On November 14, 2024, the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) successfully issued VND 2,000 billion in green bonds to lend to projects in the field of environmental protection and projects that bring environmental benefits.
This is the first time Vietcombank has issued green bonds, an important milestone in Vietcombank's environmental, social and corporate governance strategy. At the same time, this event affirms Vietcombank's pioneering role in the field of sustainable finance as well as supporting environmentally friendly projects.
Vietcombank is the first bank in Vietnam to issue green bonds in compliance with Vietnamese law and voluntarily comply with the Green Bond Principles of the International Capital Market Association (ICMA). Vietcombank's green bond framework is advised by the international organization Global Green Growth Institute (GGGI) and is highly rated by the prestigious credit rating organization S&P Global with a Medium Green rating (the second highest level in the six-level scale according to S&P Global's Shade of Green rating framework). This affirms the quality, compliance, and high level of transparency in project selection, management of disbursement of funds from issuance, and Vietcombank's governance and reporting regimes.
Ms. Helena McLeod, Acting General Director of the Global Green Growth Institute (GGGI) said: "With the support of the Government of Luxembourg, GGGI is pleased to cooperate with Vietcombank in developing and finalizing the green bond framework for this issuance. The successful issuance demonstrates the growing demand and trust from investors for green growth projects, and is a positive signal of the market potential in mobilizing capital flows from the private sector for Vietnam's transition towards net zero emissions. This issuance is also a milestone marking the expansion of GGGI's technical support for Vietnam's goal of achieving net zero emissions by 2050".
Vietcombank Headquarters
This green bond issuance of Vietcombank has received great attention from investors with the issuance rate reaching 100% of the offering volume, showing the great confidence of investors in Vietcombank's reputation and commitment, as well as the appeal of current green financial products.
Mr. Vu Quang Dong - Deputy Director of Capital & Market Division - Vietcombank said: "Vietcombank, as a leading commercial bank, always puts sustainable development and environmental protection as core goals in its development strategy. In the past time, we have always focused on giving special priority to allocating capital to environmentally friendly projects: In the period from 2020-2023, Vietcombank's total green credit balance increased by an average of nearly 4 times, from more than VND 11,765 billion in 2020 to VND 46,100 billion as of December 31, 2023.
We see a growing demand for investment in environmentally friendly projects and green bonds are an effective tool to raise capital to support these projects at a reasonable cost of capital. The proceeds from the issuance of green bonds will be disbursed to projects in seven areas including renewable energy, sustainable transport, water management, green buildings, waste management, sustainable agriculture, forestry and fisheries, and energy efficiency.
In the coming time, Vietcombank will continue to prioritize resources for green credit, affirming its role as a leading bank in sustainable development. Through the issuance of green bonds, Vietcombank hopes to actively contribute to the sustainable development of Vietnam and promote the Vietnamese green bond market."
With the determination to join the Government in implementing the commitment to achieve net zero emissions by 2050, Vietcombank hopes that the issuance of green bonds according to international and Vietnamese standards will spread green finance orientation to the community. At the same time, it will strengthen Vietcombank's position in the green finance sector and open up sustainable investment opportunities for domestic and international investors.
Source: https://phunuvietnam.vn/vietcombank-phat-hanh-thanh-cong-2000-ty-dong-trai-phieu-xanh-20241118113758166.htm
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