HANOI, Vietnam, June 25, 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.
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