IFC Supports SeABank to Issue Vietnam's First Blue Bond, Boost Climate Finance
HANOI, Vietnam, June 24, 2024 /PRNewswire/ -- To catalyze a viable blue finance market, foster green bonds and support smaller businesses in Vietnam, IFC is providing a financing package of $150 million to Southeast Asia Commercial Joint Stock Bank (SeABank, stock code: SSB). The investment entails Vietnam's first blue bond and the first green bond by a private commercial bank in the country.
As part of that, IFC's $25 million subscription in blue bonds will allow SeABank to expand its funding for sustainable economic activities associated with ocean and water (aquaculture and fisheries, water supply, etc.). IFC's $50 million subscription in green bonds will help the bank increase financing for green assets (green buildings, renewable energy, and energy efficiency). As the implementing entity of the UK's Market Accelerator for Green Construction (MAGC) Program, IFC will provide a performance-based incentive of up to $0.48 million targeting retail borrowers to help offset the incremental greening costs associated with green housing units purchase.
Additionally, IFC's $75 million loan to SeABank is aimed at promoting financial inclusion through boosting financing for SMEs, including women-owned businesses.
"IFC's investment will help SeABank increase funding for initiatives that support the country's climate and financial inclusion agenda. We are proud to be issuing Vietnam's first blue bond and the first green bond by a private commercial bank. We look forward to working with IFC to further bolster our green and blue portfolio strategy," said Le Thu Thuy, Vice Chairwoman of SeABank BOD.
Alongside the investment, IFC will advise SeABank on adopting green and blue bond frameworks, while helping SeABank identify eligible green and blue assets and develop a pipeline.
"Vietnam's green transition relies heavily on private capital, and the launch of innovative financing instruments such as blue and green bonds offers a new source of funding for climate-related projects," said Thomas Jacobs, IFC Country Manager for Vietnam, Cambodia, and Lao PDR. "With investment in a leading player, IFC is establishing new asset classes while mobilizing capital and strengthening the capacity of local financial institutions to drive increased climate finance in Vietnam."
Two parties have partnered since 2021 to expand SMEs lending via tailored products, increase climate finance access and international trade. With IFC's support, SeABank could develop an integrated ESG framework and prioritize funding for green projects, thereby promoting climate change mitigation and resource efficiency.
SOURCE SeABank
Share this article