HANOI: Asian Infrastructure Investment Bank (AIIB) provides an investment of US$75 million to the green and blue bonds issued by Southeast Asia Commercial Joint Stock Bank (SeABank).
AIIB’s US$75 million investment is expected to further strengthen the bank’s strong capital base to expand financing for sustainable economic activities linked to the sea and water, and grow green assets such as green buildings, renewable energy and energy efficiency.
“Vietnam’s Nationally Determined Contribution lays emphasis on the importance of resource mobilisation from financial and international credit institutions to support climate mitigation and adaptation ambitions.
“This cooperation will supplement the ongoing measures to reduce greenhouse gas emissions and contribute to the thematic capital market development,” said AIIB Director General of Financial Institutions and Funds, Global, Gregory Liu.
Following SeABank’s sustainable commitment, one of the current priorities is to issue the first blue bond in Vietnam 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 green and blue economy,” said SeABank Vice Chairwoman of the BOD, Le Thu Thuy.
The investment was mobilised by the co-investor introduction of IFC, SeABank’s strategic partner in terms of sustainable projects, in partnership with the Australian government. Previously at the end of June, IFC provided a US$150 million financing package which includes investments in SeABank’s blue and green bonds.
Sharing the same goal of promoting Vietnam’s sustainable economy, together AIIB and IFC are investing US$150 million in SeABank’s blue and green bonds. Further, IFC will advise SeABank on the bond issuance, application of related frameworks, and pipeline development.
With its sustainable development goal, in recent years, SeABank has continuously prioritized application of E&S risk management, implementation of financial inclusion and green finance projects.
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 with a total capital of approximately US$850 million.
