The Asian Development Bank (ADB) has signed a $150-million syndicated sustainability-linked loan with Vinschool Joint Stock Company, marking the ADB’s first private sector investment in Vietnam’s education sector.
According to an announcement, the loan will be used to expand the Vinschool education system, providing educational facilities for 20,400 students in urban areas of Ha Noi, Ho Chi Minh City (HCMC), and Hung Yen.
“This project marks ADB’s first private sector investment in Vietnam’s education sector and highlights our commitment to fostering sustainable development in the country,” said ADB Country Director for Vietnam Shantanu Chakraborty. “By supporting the country’s first sustainability-linked loan in the education sector, we aim to enhance educational infrastructure while contributing to new residential hub development in the country.”
As the mandated lead arranger and book-runner, ADB has syndicated and structured a financing package that includes a $40 million loan from ADB Ordinary Capital Resources, a $35 million loan from leading Asia’s Private Sector Infrastructure Fund 2 (LEAP 2) administered by ADB, and $75 million in parallel loans.
The parallel loans comprise $40 million from ILX, an Amsterdam-based emerging market asset manager, and $35 million from the Emerging Africa & Asia Infrastructure Fund, an emerging market infrastructure debt fund established by the Private Infrastructure Development Group and managed by NinetyOne. The loan has been validated through a second-party opinion from DNV Business Assurance Vietnam Co., Ltd.
“We are delighted to partner with ADB and other impact-focused lenders on this groundbreaking initiative. This investment will enable us to provide high-quality learning opportunities to more students while setting a benchmark for sustainable education in Vietnam,” said Vinschool Chief Executive Officer Phan Ha Thuy.
Vietnamese education players have garnered significant attention from private equity investors seeking to fuel their growth and expansion.
Hong Kong-based Gaw Capital Partners has invested an undisclosed amount in NPX Point Avenue, a Vietnam-based K-12 education company. Through its Education Platform, Gaw Capital has now become the majority shareholder of NPX.
Recently, DealStreetAsia reported that shareholders of the education group EQuest enlisted Rippledot Capital to handle a sale process that could potentially raise up to $200 million. EQuest has support from US-based KKR.
KKR also reportedly has interests related to Malaysia-based Taylor’s Education Group, with the potential acquisition of Vietnam-based education company Koala House being considered.
The consolidation trend among private education companies in Vietnam has intensified, partly because securing land for schools in major cities is becoming more challenging.
Navis Capital-backed IGC Group acquired Hong Duc School early last year while EQuest expanded its platform by acquiring Khoi Nguyen and Ngoi Sao Ha Noi.
Deal activity is also noteworthy in the edtech and enrichment segments. Excelsior Capital Vietnam Partners recently invested in the English language training company Kapla Vietnam. Simultaneously, Dream Viet Education obtained funding from Asia Business Builders and DTP Education Solutions.
