The Asian Infrastructure Investment Bank (AIIB) has signed a $75 million financing agreement to support green and blue bonds to be issued by the Southeast Asia Commercial Joint Stock Bank (SeABank). This is the first blue bond issued by Vietnam and also the AIIB’s first investment in a blue bond.
The project is expected to further strengthen SeABank’s strong capital base to expand financing for sustainable economic activities related to water and the sea. It is also expected to increase green assets such as green buildings, renewable energy and energy efficiency.
Vietnam is a founding member of the AIIB, a multilateral development bank whose mission is to finance Infrastructure for Tomorrow. The country has long coastlines that have great potential for developing a blue economy, so it has promising potential with respect to the investment objectives of the SeABank.
“Vietnam’s Nationally Determined Contribution underscores the importance of mobilizing resources from international financial and lending institutions to support climate mitigation and adaptation ambitions,” said Gregory Liu, Managing Director of Financial Institutions and Funds at AIIB Global.
“The AIIB is very pleased to work with SeABank and IFC on this innovative transaction which will complement ongoing measures to reduce greenhouse gas emissions and contribute to the development of the thematic capital market. We look forward to seeing further issuances from other Vietnamese financial institutions.”
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“In line with SeABank’s commitment to sustainability, one of our priorities is to issue Vietnam’s first blue bond and the first green bond from a private commercial bank in the country,” said Le Thu Thuy, Vice Chairwoman of the Board of Directors of SeABank.
“We hope that our partnerships with financial institutions such as the AIIB and IFC will complement SeABank’s capital sources to foster green lending and sustainable strategies associated with the green and blue economies.”
Sharing the same goal of empowering Vietnam’s sustainable economy, AIIB and IFC (the other parallel investor) are supporting SeABank in this green and blue bond project. The two financial institutions have committed to invest up to USD 150 million in this project, while advising SeABank on the issuance of green and blue bonds, the implementation of related frameworks and the development of pipelines.
Vietnam’s Nationally Determined Contribution emphasizes the importance of mobilizing resources from international financial and credit institutions
In line with its sustainable development goal, SeABank has continuously prioritized the implementation of international best practices in environmental and social risk management, while effectively implementing financial inclusion projects for small and medium-sized enterprises and women-owned businesses, green financing and climate change mitigation projects. As a result, SeABank has garnered the trust and continued investments of various international financial institutions, with a total capital of nearly US$850 million.
The AIIB is committed to supporting SeABank’s efforts to expand partnerships and implement sustainable projects to create positive socio-economic and environmental impact, thereby contributing to national green transition goals and net-zero commitments.
Source: https://reporteasia.com/destacado/2024/07/16/aiib-destina-75-millones-dolares-bonos-verde-azul-seabank-vietnam/
