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IFC supports SeABank in issuing VN's first blue bond
The International Finance Corporation is providing a financing package of US$150 million to Southeast Asia Commercial Joint Stock Bank (SeABank) to activate a viable blue finance market, while also fostering green bonds and supporting smaller businesses in Việt Nam.
A customer makes a transaction at SeABank. — Photo baotintuc.vn
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The investment will see the first ever blue bond issue in Việt Nam and the first green bond by a private commercial bank in the country.
As part of the financing package, IFC, a member of the World Bank, will offer a $25 million in a blue bond, allowing SeABank to expand its funding for sustainable economic activities associated with the oceans and seas, such as aquaculture and fisheries.
IFC’s subscription in a green bond of $50 million will help the bank increase its financing of green assets, including green buildings, renewable energy and energy efficiency.
Additionally, IFC’s loan of $75 million to SeABank aims to boost financing for small and medium enterprises (SMEs), including women-owned businesses, to promote financial inclusion.
Alongside the investment, IFC will advise SeABank on adopting green and blue bond frameworks, while helping the bank identify eligible green and blue assets.
“IFC’s investment will help SeABank increase funding for initiatives that support the country’s climate and financial inclusion agenda," Lê Thu Thủy, Vice Chairwoman of SeABank Board of Directors said. "We look forward to working with IFC to further bolster our green and blue portfolio strategy."
“Việt Nam’s green transition relies heavily on private capital and the launch of innovative financing instruments such as blue and green bonds offers a new source of funding for climate-related projects,” said Thomas Jacobs, IFC Country Manager for Việt Nam, Cambodia and Lao PDR.
“With this investment, IFC is establishing new asset classes while mobilising capital and strengthening the capacity of local financial institutions to drive increased climate finance in Việt Nam," he said
One of the most vulnerable countries to climate change, the Vietnamese economy is already being impacted by an estimated loss equal to about 3.2 per cent of GDP in 2020, which is expected to escalate rapidly.
While millions in the country, which has 3,000km of coastline, rely on the ocean for a livelihood, its blue economy is projected to contribute about 10 per cent to GDP by 2030.
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