HANOI, Vietnam, June 24, 2024 /PRNewswire/ — To catalyze a viable blue finance market, foster inexperienced bonds and help smaller companies in Vietnam, IFC is offering a financing bundle of $150 million to Southeast Asia Industrial Joint Inventory Financial institution (SeABank, inventory code: SSB). The funding entails Vietnam’s first blue bond and the primary inexperienced bond by a personal business financial institution within the nation.
As a part of that, IFC’s $25 million subscription in blue bonds will enable SeABank to increase its funding for sustainable financial actions related to ocean and water (aquaculture and fisheries, water provide, and so on.). IFC’s $50 million subscription in inexperienced bonds will assist the financial institution enhance financing for inexperienced belongings (inexperienced buildings, renewable vitality, and vitality effectivity). Because the implementing entity of the UK’s Market Accelerator for Inexperienced Building (MAGC) Program, IFC will present a performance-based incentive of up to $0.48 million concentrating on retail debtors to assist offset the incremental greening prices related to inexperienced housing items buy.
Moreover, IFC’s $75 million mortgage to SeABank is aimed toward selling monetary inclusion by way of boosting financing for SMEs, together with women-owned companies.
“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,” mentioned Le Thu Thuy, Vice Chairwoman of SeABank BOD.
Alongside the funding, IFC will advise SeABank on adopting inexperienced and blue bond frameworks, whereas serving to SeABank determine eligible inexperienced and blue belongings 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,” mentioned Thomas Jacobs, IFC Nation Supervisor 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 events have partnered since 2021 to increase SMEs lending through tailor-made merchandise, enhance local weather finance entry and worldwide commerce. With IFC’s help, SeABank may develop an built-in ESG framework and prioritize funding for inexperienced tasks, thereby selling local weather change mitigation and useful resource effectivity.
