Vietnam’s First Blue Bond: IFC’s $150M Support to SeABank for Climate Finance Innovation

Key Points

1. Investment Highlights: IFC provides $150 million to SeABank, marking Vietnam’s first blue bond and a green bond by a private bank.
2. Green and Blue Bonds: $25 million in blue bonds for ocean and water activities; $50 million in green bonds for green assets.
3. Financial Inclusion: $75 million loan to support SMEs, including women-owned businesses.

Investment Breakdown

IFC’s $25 million blue bond subscription will fund ocean and water-related projects, while $50 million in green bonds will support green buildings, renewable energy, and energy efficiency.

“IFC’s investment will help SeABank increase funding for initiatives that support the country’s climate and financial inclusion agenda. We are proud to be issuing Vietnam’s first blue bond and the first green bond by a private commercial bank. We look forward to working with IFC to further bolster our green and blue portfolio strategy,” said Le Thu Thuy, Vice Chairwoman of SeABank BOD.

As part of the UK’s Market Accelerator for Green Construction Program, IFC offers a $0.48 million incentive to offset costs for green housing units.

“Vietnam’s green transition relies heavily on private capital, and the launch of innovative financing instruments such as blue and green bonds offers a new source of funding for climate-related projects,” said Thomas Jacobs, IFC Country Manager for Vietnam, Cambodia, and Lao PDR.

A $75 million loan aims to boost financing for small and medium enterprises, particularly those owned by women.

“With investment in a leading player, IFC is establishing new asset classes while mobilizing capital and strengthening the capacity of local financial institutions to drive increased climate finance in Vietnam,” added Jacobs.

Ongoing Partnership

• Collaboration Since 2021: IFC and SeABank have worked together to expand SME lending, improve climate finance access, and promote international trade.
• Future Goals: IFC will continue to advise SeABank on green and blue bond frameworks, helping identify eligible assets and develop a sustainable finance pipeline.

This collaboration is set to establish new asset classes and strengthen local financial institutions to drive climate finance in Vietnam.