ACB allocates 2,000 billion VND in Green/Social Credit for businesses

The Green/Social Credit Package, in addition to providing additional important capital from the bank to businesses in the market, is also a way for ACB, together with customers and partners, to develop sustainably, in line with the banking industry development strategy associated with the task of developing green credit - green banking set forth by the State Bank of Vietnam (SBV).

ACB's Green/Social Credit Package is built based on the categories and criteria of the Green/Sustainable Finance Framework, advised and guided by the International Finance Corporation (IFC) to ensure compliance with international rules but still consistent with the bank's internal processes. The Green/Sustainable Finance Framework follows the Green Bond Principles and Sustainable Bond Principles established by the International Capital Market Association (ICMA) and the Green/Sustainable Lending Principles established by the Loan Market Association (LMA).

ACB will prioritize credit financing for businesses with production and business plans in the green category or in the social category. Accordingly, eligible businesses in the green category include renewable energy (solar power); efficient use of energy; green buildings; pollution control and prevention; clean transportation (including hybrid vehicles); sustainable water management and wastewater treatment; sustainable management of the living environment, natural resources and land use. For the social category, eligible businesses owned by women, demonstrating progress and equal empowerment will be given priority access to capital by ACB.

In order to achieve the goal of green/social credit growth with a limit of VND2,000 billion, ACB also supports businesses by offering preferential interest rates from only 6%/year for short-term and long-term loans. Loans can also be selected to maintain incentives for up to 24 months and have prepayment fees waived/reduced. In addition, businesses can also optimize costs and increase business efficiency when using the additional financial solution "ACB 0 fee" for account services, cash flow management, international money transfer or credit granting in the form of Letter of Credit L/C, guarantee, Export contract financing,...

Mr. Ngo Tan Long, Deputy General Director of ACB - said: "The Green/Social Credit Program with outstanding incentives is a comprehensive financial solution that ACB proactively provides to businesses. We are ready to accompany businesses in shifting towards sustainable development. In the long term, we will promote green capital according to ACB's ESG implementation strategy".

With the newly deployed Green/Social Credit package, ACB will have standards for evaluating and monitoring capital use to ensure that capital is used for the right purposes, bringing benefits to businesses when choosing to follow the direction of sustainable development, and ACB itself will have a "net" to screen businesses with positive impacts on the environment and society to continue accompanying.

On the journey of pioneering ESG implementation, ACB has integrated sustainable development strategy into business activities. It is known that ACB is developing a green/sustainable bond framework and will announce it in the near future, aiming to increase green capital to finance green projects in Vietnam, as well as create conditions for businesses to have more options and opportunities to expand production and business in a sustainable direction.

In 2023, ACB was the first bank in Vietnam to publish a separate report on sustainable development (ESG) and carry out a series of environmental protection activities to inspire and spread the spirit of responsibility for the living environment to shareholders, partners, customers and the community.

For more information about the Green Credit package, please visit https://acb.com.vn/doanh-nghiep-goi-giai-phap/day-tin-dung-xanh-bat-nhanh-tang-truong

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