Additional funding sources boost green finance.

To build a green financial market (investing in projects related to environmental protection) and support small and medium-sized enterprises in Vietnam, the International Finance Corporation (IFC) will provide a $150 million financing package to Southeast Asia Commercial Joint Stock Bank ( SeABank ). The IFC financing package includes the first blue-green bond in Vietnam and the first green-green bond issued by a domestic private commercial bank. In this package, IFC subscribed to purchase $25 million worth of blue-green bonds, helping SeABank raise additional capital for sustainable economic activities related to the ocean and water (such as aquaculture and fisheries, clean water supply, etc.). IFC also subscribed to purchase $50 million worth of green bonds to help the Bank expand financing of green assets in areas such as green buildings, renewable energy, and energy efficiency.

Customers conducting transactions at Southeast Asia Commercial Joint Stock Bank.

Simultaneously, IFC, as the implementing organization of the UK and IFC Green Building Market Support Programme (MAGC), will provide up to $0.48 million in performance-based concessional fees to SeABank for individual homebuyers to help offset the initial investment costs of implementing green building solutions that developers have factored into the home price. In addition, IFC will also provide a $75 million loan to SeABank to enhance lending to small and medium-sized enterprises (SMEs), including women-owned businesses, to promote financial inclusion. According to experts, as one of the countries most vulnerable to climate change globally, Vietnam's economy suffered approximately 3.2% of its GDP in 2020 due to climate change, and this figure is expected to continue to rise rapidly. With a coastline stretching over 3,000km, the livelihoods of millions of Vietnamese people depend on the ocean. Vietnam's marine economy is projected to contribute approximately 10% of GDP by 2030. To achieve net-zero emissions by 2050, Vietnam needs to invest an additional 6.8% of GDP annually, or a total of US$368 billion by 2040, with half of that expected to come from the private sector. “IFC’s investment will help SeABank strengthen its financing for initiatives supporting Vietnam’s climate finance and inclusive finance programs. We are proud to be the first institution to issue blue bonds in Vietnam and the first domestic private commercial bank to issue green bonds. We hope that strengthening cooperation with IFC will further promote the Bank’s strategies for developing a green and blue portfolio,” said Ms. Le Thu Thuy, Vice Chairwoman of the Board of Directors of SeABank. Along with the financing package, IFC will advise SeABank on the application of green and blue bond frameworks, and help the Bank identify eligible green and blue assets and build a portfolio of potential projects. “Vietnam’s green transition relies heavily on private investment, therefore, deploying innovative financial instruments such as blue bonds and green bonds will bring new capital to climate-related projects. By investing in a leading financial institution like SeABank, IFC aims to establish new asset classes, while also mobilizing capital and strengthening the capacity of domestic financial institutions to promote climate finance in Vietnam,” said Thomas Jacobs, IFC Country Director for Vietnam, Cambodia and Laos.

Text and photos: HONG ANH

Source: https://www.qdnd.vn/kinh-te/tai-chinh/them-nguon-von-thuc-day-tai-chinh-xanh-783465