First Private Bank in Vietnam Announces Green Bond Framework

Vietnam Technological and Commercial Joint Stock Bank (Techcombank) has just marked a pioneering milestone by becoming the first private bank in Vietnam to announce a Green Bond Framework - an important step towards sustainable development.

Customer transactions at Techcombank

This bond framework is developed in accordance with the International Capital Market Association (ICMA) Green Bond Principles, demonstrating Techcombank’s strong commitment to promoting sustainable development and supporting Vietnam’s transition to a green economy. Mr. Jens Lottner, CEO of Techcombank shared: “We are proud to be the first private bank in Vietnam to launch a Green Bond Framework in accordance with the ICMA Green Bond Principles. This initiative is a testament to our ongoing commitment to promoting sustainable finance while contributing to a greener future for Vietnam.” Techcombank’s Green Bond Framework was developed with support and technical advice from experts from the Global Green Growth Institute (GGGI). It is a guiding document that ensures that the proceeds from the issuance of Green Bonds will be used by Techcombank to finance projects that bring environmental benefits. Techcombank’s Green Bond Framework was independently assessed by S&P Global, one of the world’s most prestigious credit rating agencies, with Techcombank’s Green Bond Framework rated “Medium Green” – the second highest level in the agency’s rating system. This affirms Techcombank’s transparency, environmental benefits, and alignment with international standards of green initiatives. The sectors eligible under Techcombank’s Green Bond Framework are also assessed by S&P as “contributing to addressing the important challenges facing Vietnam”. By announcing the Green Bond Framework, Techcombank has affirmed the bank’s commitment as well as signaled a strong development trend in the field of sustainable finance. By raising capital for green projects, Techcombank is committed to playing an important role in promoting Vietnam’s environmental goals, while enhancing investor confidence in the growing green finance market. Techcombank currently serves 14.8 million retail and corporate customers through its digital banking platform and mobile banking app, as well as a nationwide network of branches and transaction offices. Techcombank’s ecosystem approach, implemented across key economic sectors with its partners, continues to differentiate Techcombank in one of the fastest growing economies in the world. Techcombank is rated AA- by FiinRatings and Ba3 by Moody’s, respectively. Techcombank is also rated BB- by S&P, the highest rating among joint stock commercial banks in Vietnam.

Source: https://nhandan.vn/ngan-hang-tu-nhan-dau-tien-tai-viet-nam-cong-bo-khung-trai-phieu-xanh-post848690.html