IFC invests in Vietnam’s blue bond for first time

Thursday, 27/06/2024 17:37
Aiming to build a green financial market and support small and medium-sized enterprises in Vietnam, the International Finance Corporation (IFC) will provide a funding package of 150 million USD for SeABank.
Photo for illustration. (Source: thesaigontimes.vn)

In this financing package, IFC registered to buy 25 million USD of Vietnam’s first blue bond (focusing on marine-related projects) to help SeABank mobilize more capital for sustainable economic activities with the ocean and water such as aquaculture, fisheries and clean water supply.

IFC also registered to buy green bonds (focusing on projects related to the environment) worth 50 million USD to help the bank expand financing of green assets in the fields of green buildings, renewable energy and energy efficiency.

The organization also provided 0.48 million USD in incentive fees based on SeABank’s funding performance for providing home loans to individual customers to help them offset initial investment costs for applying green building solutions.

In addition, IFC also provided a loan worth 75 million USD for SeABank to increase loans to small and medium-sized enterprises, including women-owned businesses, to promote financial inclusion.

SeABank is the first bank to issue blue bonds in Vietnam and the first domestic private commercial bank to issue green bonds.

Mr. Thomas Jacobs, IFC Country Director for Vietnam, Cambodia and Laos, said that with the investment in SeABank, IFC aims to establish new asset types, while mobilizing capital and strengthening the capacity of domestic financial institutions to promote climate finance in Vietnam.

Along with the financing package, IFC will advise SeABank on applying green and blue bond frameworks, and help the bank identify green and blue assets eligible for financing, as well as build a list of potential projects./.