IFC, a member of the World Bank Group, said it has given Italian scooter producer Piaggio a loan of 45 million euros to increase production of eco-friendly vehicles in Vietnam and India.
The loan, equivalent to US$58.5 million, will enable the company to expand the production capacity in its plant in the north of Vietnam and further develop another factory in India, IFC said in a statement dated Wednesday.
The goal is to create new jobs and introduce more fuel-efficient transport to the market, said IFC, the largest global development institution focused on the private sector in developing countries.
"One of Piaggio's strategic priorities is expansion in emerging markets, particularly in Asia, with an increasingly eco-friendly and fuel-efficient product pipeline for both our two-wheeler and light commercial vehicle ranges," said Roberto Colaninno, Piaggio Group Chairman and CEO.
The expansion projects will create approximately 300 new jobs in India and 480 new jobs in Vietnam, according to the IFC statement.
Piaggio began production at its $30 million factory in the northern province of Vinh Phuc, around 40 kilometers from the capital city of Hanoi, in mid 2009.