Key Impact Points:
- First in Vietnam: This investment marks the first-ever blue bond and the initial green bond by a private commercial bank in Vietnam.
- Strengthening Sustainability: The funds aim to bolster SeABank’s ability to finance projects related to water and the sea, as well as other green initiatives like renewable energy.
- Expanding Economic Horizons: By backing SeABank, AIIB supports Vietnam’s broader goals for a sustainable economy and green transition, enhancing the country’s capacity for climate resilience.
Investment Overview
The Asian Infrastructure Investment Bank (AIIB) has committed $75 million to support the issuance of green and blue bonds by Southeast Asia Commercial Joint Stock Bank (SeABank), setting a precedent with Vietnam’s first blue bond and AIIB’s inaugural investment in such an instrument. This strategic move aligns with SeABank’s expansion plans for financing environmentally sustainable economic activities, especially in water-related and maritime sectors, as well as green assets like energy-efficient buildings and renewable energy projects.
Strategic Importance
Vietnam, a founding AIIB member with vast coastlines, holds significant potential for developing a blue economy. This investment aligns with the country’s Nationally Determined Contribution, emphasizing the importance of financial resources for climate action. Gregory Liu, AIIB Director General of Financial Institutions and Funds, Global, stated, “AIIB is very pleased to work with SeABank and IFC in this innovative transaction that will supplement ongoing measures to reduce greenhouse gas emissions and contribute to thematic capital market development.”
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Commitment to Sustainability
SeABank’s dedication to sustainability is evident in their proactive approach to issuing Vietnam’s first blue bond and a green bond by a private bank. “We hope our partnerships with financial institutions such as AIIB and IFC would supplement SeABank’s capital sources to foster green credit and sustainable strategies associated with the green and blue economies,” said Le Thu Thuy, SeABank Vice Chairwoman of the Board of Directors. This commitment is further supported by a joint investment of up to $150 million from AIIB and IFC, which also includes advisory on the issuance processes and framework application.
Related Article: Vietnam’s First Blue Bond: IFC’s $150M Support to SeABank for Climate Finance Innovation
Broader Implications
SeABank has established itself as a trusted institution by adhering to international standards in environmental and social risk management and supporting financial inclusion initiatives. The bank’s efforts in green finance and climate change mitigation have attracted nearly $850 million in capital from various international entities, cementing its reputation and operational foundation. Through this bond issuance, AIIB reinforces its commitment to supporting partnerships and projects that yield positive socio-economic and environmental outcomes, steering Vietnam towards its green transition and net zero ambitions.
