Clients conduct their banking transactions at a SeABank branch. — Photo courtesy of SeABank
The Asian Infrastructure Investment Bank (AIIB) has invested US$75 million into the green and blue bonds issued by Southeast Asia Commercial Joint Stock Bank (SeABank).
AIIB’s $75-million investment in the green and blue bonds is expected to further strengthen the bank’s strong capital base to expand financing for sustainable economic activities linked to the maritime sector and grow green assets such as eco buildings, renewable energy and energy efficiency.
“Việt Nam’s Nationally Determined Contribution (NDC) lays emphasis on the importance of resource mobilisation from financial and international credit institutions to support climate mitigation and adaptation ambitions. AIIB is pleased to work together with SeABank and IFC in this innovative transaction, which will supplement the on-going measures to reduce greenhouse gas emissions and contribute to the thematic capital market development,” said Gregory Liu, AIIB Director General of Financial Institutions and Funds, Global. “We look forward to seeing more issuances from other Vietnamese financial institutions in the future.”
Lê Thu Thủy, Vice Chairwoman of the Board of Directors of SeABank said: “Following our sustainable commitment, one of our current priorities was to issue the first blue bond in Việt Nam and to issue the first green bond by a private commercial bank in the country. We hope the partnerships with financial institutions such as AIIB and IFC could supplement SeABank with capital sources to foster green credit and sustainable strategies associated with a green and blue economy.”
The investment was mobilised by the co-investor introduction of IFC, a strategic partner which has been supporting SeABank to implement sustainable projects associated with ecological finance and financial inclusion, in partnership with the Australian government.
At the end of last month IFC provided a financing package of US$150 million, which included investments in SeABank’s blue and green bonds. Sharing the same goal of promoting Việt Nam’s sustainable economy, together AIIB and IFC are investing $150 million in SeABank’s blue and green bonds.
Further, IFC will advise SeABank on the issuance of green and blue bonds, application of related frameworks and pipeline development.
Consistent with that sustainable development goal, in recent years, SeABank has prioritised the application of international best practices in environmental and social (E&S) risk management, while effectively implementing financial inclusion projects for small and medium-sized enterprises and women-owned enterprises, green finance projects and climate change mitigation.
As a result, the bank has been entrusted with and has received continuous investments from various international financial institutions such as DFC, IFC and ADB, to a total capital of approximately $850 million.
SeABank's efforts to expand partnerships and implement sustainable projects act as a promise to create positive socio-economic and environmental impacts, thereby contributing to the national goal of green transition and commitment towards net zero. — VNS