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| BIDV General Director Le Ngoc Lam and ADB Director of Private Sector Operations Suzanne Gaboury signed a Memorandum of Understanding on promoting green credit and sustainable finance. |
Within the framework of the 28th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP28) in Dubai, United Arab Emirates, witnessed by Prime Minister Pham Minh Chinh, the Ministry of Natural Resources and Environment, the Ministry of Planning and Investment and relevant ministries and agencies, on December 1, BIDV presented a cooperation document with the Asian Development Bank (ADB) and Standard Chartered Bank (SCB) on promoting green financing and sustainable finance activities.
Following the successful cooperation over the past years between BIDV and ADB to promote financial inclusion, digitalize business operations for small and medium enterprises and women-owned enterprises, the two sides agreed to elevate cooperation, sign and exchange a Memorandum of Understanding on promoting green credit at the COP28 Conference.
Accordingly, the MoU between BIDV and ADB includes contents to implement green credit cooperation between the two sides, contributing to supporting the transition to a green economy in Vietnam. The key cooperation contents of the MoU include considering the implementation of a medium- and long-term loan worth 200 million USD, to help BIDV increase lending to small and medium-sized enterprises, apply energy efficiency models and sustainable agriculture; share experiences and good practices in implementing and disclosing climate finance information. The MoU marks an important step forward in the relationship between the two sides in the journey to support Vietnam in realizing its commitment to achieve net zero emissions by 2050.
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| BIDV General Director Le Ngoc Lam and Standard Chartered Bank Vietnam General Director Michele Wee presented the Sustainable Development Trade Finance Framework Agreement. |
Also within the framework of COP28, BIDV and Standard Chartered Bank signed a Sustainable Development Trade Finance Framework Agreement worth up to USD 100 million. With this commitment, Standard Chartered Bank will arrange financing for import transactions that meet the green criteria as stipulated in the Agreement, thereby enhancing access to green finance for BIDV's corporate customers.
In the context that import-export activities are always a bright spot of the Vietnamese economy, playing an important role in orienting economic development, the Framework Agreement on Sustainable Trade Finance between BIDV and Standard Chartered Bank through support for businesses with import-export activities that meet green criteria will contribute to accelerating the process of transforming the Vietnamese economy towards environmental protection and sustainable development.
Towards a comprehensive strategy for sustainable development, BIDV has recently made important strides in green growth and sustainable finance. Specifically, BIDV is the first domestic commercial bank to issue a "Sustainable Loan Framework" and a "Green Bond Framework" in accordance with international standards. BIDV's Green Bond Framework is highly rated by Moody's Credit Rating Agency with a rating of SQS2.
In October 2023, BIDV successfully issued a green bond worth VND2,500 billion (about more than USD100 million) to finance projects aimed at environmental protection goals. BIDV is also a pioneer bank in cooperating with the Ministry of Natural Resources and Environment in promoting green finance, sustainable development and responding to climate change. As of September 30, 2023, BIDV leads the market in green credit with 1,528 customers and total outstanding green loans reaching USD2.98 billion.
The cooperation events between BIDV and its partners took place on the sidelines of the world's largest climate summit, witnessed by the leaders of the Vietnamese Government, thereby reaffirming BIDV's strong commitment to sustainable development. At the same time, this is also a message from BIDV to the domestic and international community about the priority direction of cooperation with partners to actively deploy sustainable finance, accompanying the Vietnamese Government in its efforts to realize its commitments to reduce emissions and protect the environment.
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