Key Points
- Global collaboration: MUFG Bank, JICA, and partner banks in Thailand, Indonesia, Vietnam, and the Philippines unite under a new Sustainable Finance Framework.
- Targeted impact: Framework finances green, social, and sustainability loans aligned with international principles to address environmental and social challenges.
- Third-party validation: Moody’s confirms alignment with 2023 Green and Social Loan Principles.
Driving Sustainable Finance in Asia-Pacific
MUFG Bank and the Japan International Cooperation Agency (JICA) have jointly launched the Sustainable Finance Framework to channel funding into projects that directly tackle environmental and social challenges in developing countries.
The initiative brings together MUFG Bank and its partner banks — Krungsri (Thailand), Bank Danamon (Indonesia), VietinBank (Vietnam), and Security Bank (Philippines) — to deliver green loans, social loans, and sustainability loans.
Backed by Global Standards
Moody’s, acting as an independent third party, assessed the framework and confirmed it meets the Loan Market Association (LMA), Loan Syndication & Trading Association (LSTA), and Asia Pacific Loan Market Association (APLMA) 2023 Green Loan and Social Loan Principles.
“The Framework applies exclusively to projects that contribute to the resolution of environmental and social issues,” MUFG stated.
Funding Eligible Projects
Loans will support:
- Renewable energy projects like solar and wind
- Clean transportation, including battery-powered EVs
- Affordable housing and basic infrastructure
- Sustainable water and wastewater management
- SME development and food security initiatives
Strengthening SDG Alignment
MUFG and JICA will manage proceeds through annual reporting and impact assessments, ensuring alignment with the Sustainable Development Goals (SDGs).
“Through the Framework, MUFG Bank, its Partner Banks, and JICA will redouble their efforts to realize a sustainable future,” the partners said.
Read The MUFG Bank-JICA Sustainable Finance Framework
Related Content: MUFG and NZBA Set New Climate Targets for Capital Markets: Steering Toward Net-Zero by 2050
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