To serve Viet Nam’s growing education demand through supporting the development of K-12 education infrastructure across the country.
Along with the Keppel-Pierfront Private Credit Fund (the Fund), AIIB is proposing to make a financing co-investment in Varsity Scholastic Asia Holdings II Pte Ltd, which is ultimately controlled by Kohlberg Kravis Roberts & Co. L.P., to partially fund its investment in VS Development Investment Joint Stock Company (VS or the Company). VS, through its subsidiary, Vinschool Joint Stock Company (Vinschool), operates one of Viet Nam’s largest K-12 education system with 49 campuses and ~42,000 students across Hanoi, Ho Chi Minh City, Hai Phong, Thanh Hoa and Ha Tinh.
AIIB’s Environmental and Social Policy (ESP) including the Environmental and Social Exclusion List (ESEL) and relevant Environmental and Social Standards (ESSs) apply to this Project. Here, AIIB’s ESS 1 on environmental and social (ES) assessment and management applies. The Project has been categorized as Category B and an ESMP (Environmental & Social Management Plan) will be used as the Project’s ES instrument.
The ES issues identified are limited in number and area, not unprecedented, and manageable using good practice in an operational setting and application of the ESMP. Specific actions and recommendations to address these issues have been made and the AIIB will monitor the implementation of these actions. AIIB has assessed the ESMP which adequately covers and manages the key ES risks in accordance with the ESP.
Post investment, AIIB and the Fund Manager will be required to monitor the Company’s ES performance. AIIB requires submission of relevant ES documentation and ES performance monitoring reports from the Fund Manager in an agreed format and frequency. AIIB will conduct post-reviews of the implementation of the project as part of its regular supervision, comprising engagement with the Fund Manager, site visits as appropriate and detailed review of the ES documentation, when conditions allow.
The Company seeks feedback and conducts surveys regularly with related stakeholders and maintains an External Communication Mechanisms (ECM) to address third-party views, enquiries, or concerns. Where applicable, in the event that the Company undertakes construction, renovation or high E&S risk activities under the co-investment, it will be required to: (i) disclose the necessary ES documentation and permits, including information on the availability of the ECM and the PPM in English and in local language, in a timely and appropriate manner; and (ii) conduct stakeholder consultation; all in line with AIIB’s ESP and local regulations.
Asian Infrastructure Investment Bank
Jingyi Zhang
Senior Investment Officer
Menglin Yang
Investment Officer
Keppel Credit Fund Management Pte. Ltd.
Stephane Delatte
Chief Executive Officer and Chief Investment Officer
