Proceeds from the bond issuance will be used to finance green projects, energy saving, emission reduction, environmental protection, in accordance with BIDV's Green Bond Framework.
This is the first time the Vietnamese capital market has witnessed a domestic bond issuance with a green bond framework rated by Moody's - a leading international credit rating agency. BIDV has achieved a very high rating that Moody's has assigned to the Green Bond Framework of credit institutions, thereby confirming BIDV's high level of compliance and transparency in project selection, appraisal, lending, governance and reporting regimes.
BIDV's bond issuance is also the first green bond issuance in Vietnam with an unsecured structure, no secondary debt and no payment guarantee, demonstrating a high level of trust in the capacity and reputation of the issuer. Accordingly, all investors participating in the transaction are insurance companies and fund management companies belonging to the world's leading insurance corporations.
Mr. Tran Long - Deputy General Director of BIDV said: " BIDV has a clear strategy on developing green banking and green credit associated with the requirement to promote green credit growth and manage environmental and social risks (ESG) in credit granting activities and is ready to provide capital for customers operating in low-carbon emission sectors, adapting to climate change. Green bond capital will be an effective tool to increase BIDV's capacity in implementing the above strategy.
With the determination to join the Government in implementing the commitment to achieve net zero emissions by 2050, we hope that BIDV's pioneering issuance of green bonds according to international standards will be a source of inspiration for other organizations to join together in building a green future, strong and sustainable development."
According to Ms. Carolyn Turk, World Bank Country Director for Vietnam: “ This is a meaningful activity ahead of COP28 to support Vietnam's climate goals, contributing to creating a livable planet. The World Bank is pleased to support Vietnam in its efforts to achieve the goal of zero carbon emissions by 2050. The issuance of green bonds by commercial banks is one of many important steps to achieve that goal. With this green bond, BIDV will inspire other corporations and commercial banks to join hands in efforts to green the economy”.
“ With a responsible investment policy, we support global sustainable development initiatives and our investment team always considers and evaluates Environmental – Social – Governance (ESG) factors in the investment process to be consistent with the company's philosophy and processes, which is also the operating philosophy of Prudential Group. Participating in BIDV green bond investment is a testament to the efforts of Eastspring Vietnam and Prudential Vietnam towards sustainable development goals in Vietnam. We appreciate BIDV being the first commercial bank in Vietnam to successfully issue bonds in accordance with ICMA's Green Bond Principles and with a Second Party Opinion, demonstrating the bank's commitment to transparency, reliability and efficiency in the use of bond issuance capital " - Mr. Ngo The Trieu - General Director of Eastspring Investments Fund Management Company Limited said.
The success of the green bond issuance marks an important milestone in BIDV's journey of "Creating sustainable value", continuing to affirm its pioneering and leading position in the market in green and sustainable development activities.
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