ACB allocates 2,000 billion VND for green/social credit for businesses.

The Green/Social Credit Package, in addition to providing crucial capital from the bank to businesses in the market, is also a way forACB to develop sustainably with its customers and partners, in line with the banking industry's development strategy and the task of developing green credit and green banking set forth by the State Bank of Vietnam (SBV).

The ACB Green/Social Credit Package is built upon the categories and criteria of the Green/Sustainable Finance Framework, advised and guided by the International Finance Corporation (IFC), ensuring compliance with international rules while remaining consistent and aligned with the bank's internal processes. The Green/Sustainable Finance Framework adheres to the Green Bond Principles and Sustainable Bond Principles established by the International Capital Markets Association (ICMA) and the Green/Sustainable Lending Principles established by the Lending Markets Association (LMA).

ACB will prioritize providing credit financing to businesses with production and business plans that fall under the green or social categories. Specifically, eligible businesses in the green category include those involved in renewable energy (solar power); energy efficiency; green buildings; pollution control and prevention; clean transportation (including hybrid vehicles); sustainable water management and wastewater treatment; and sustainable management of the environment, natural resources, and land use. For the social category, businesses that meet the criteria and are owned by women, demonstrating progress and empowering women, will receive priority access to funding from ACB.

To achieve its goal of increasing green/social credit growth with a limit of VND 2,000 billion, ACB also supports businesses by offering preferential interest rates of only 6% per year for short-term and long-term loans. Loans can also be extended for up to 24 months with the option to maintain preferential rates and are exempt from/reduced early repayment fees. In addition, businesses can optimize costs and increase business efficiency by using the "ACB 0 Fee" financial solution for account services, cash flow management, international money transfers, or credit granting through Letter of Credit (L/C), guarantees, export contract financing, etc.

Mr. Ngo Tan Long, Deputy General Director of ACB, stated: "The Green/Social Credit Program, along with its outstanding incentives, is a comprehensive financial solution that ACB proactively provides to businesses. We are ready to accompany businesses in their transition towards sustainable development. In the long term, we will promote green capital in line with ACB's ESG implementation strategy."

With the newly launched Green/Social Credit package, ACB will have standards for evaluating and monitoring capital utilization to ensure that funds are used for the right purposes, benefiting businesses that choose sustainable development. ACB will also have a "screen" to select businesses with a positive impact on the environment and society to continue partnering with.

In its pioneering journey towards ESG implementation, ACB has integrated a sustainable development strategy into its business operations. ACB is reportedly developing a green/sustainable bond framework and will announce it in the near future. The goal is to increase green capital financing for green projects in Vietnam, as well as to provide businesses with more options and opportunities to expand their production and business in a sustainable manner.

In 2023, ACB was the pioneering bank in Vietnam to publish its own report on sustainable development (ESG) and implement a series of environmental protection activities to inspire and spread a sense of responsibility towards the living environment to shareholders, partners, customers, and the community.

For more information about the Green Credit package, please visit https://acb.com.vn/doanh-nghiep-goi-giai-phap/day-tin-dung-xanh-bat-nhanh-tang-truong

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