FinanceAsia names Citi Best Sustainable Bank in Vietnam
FinanceAsia names Citi Best Sustainable Bank in Vietnam
Citi has been recognised by FinanceAsia, the region's premier capital markets publication, for sustainability work in the country and commitment to partnering with clients.
This category recognises the international bank that demonstrates a proactive approach to the development of sustainability-related financing solutions in areas including green bonds, sustainability-linked loans or solutions that work to address long-term Sustainable Development Goals (SDGs) and net-zero targets in Asia's capital markets.
“This recognition underlines our commitment to support clients with their sustainability goals, and the valuable solutions that we provide. It also highlights the importance of environmental, social, and governance (ESG) as a top strategic priority and Citi’s active contribution towards global net-zero goals and COP26 commitments,” said Vietnam Citi country officer Ramachandran A.S.
Citi recently acted as an Arranger and Structurer on the World Bank’s $50 million emission reduction-linked bond that provides upfront financing for a water purification project in Vietnam.
It was one of the first of a new generation of ESG bonds designed to create carbon credits by avoiding CO2 emissions.
This transaction demonstrates the important role Citi can play in supporting connectivity between the capital markets and institutions like the World Bank that can help reduce emissions, expand the availability of clean drinking water, and bring scale to voluntary carbon markets.
Citi also facilitated a $7.2 million funding to the Sustainability Investment Promotion and Development JSC (SIPCO) for the “Water Purifiers to Rural Schools in Vietnam” project, while securing the offtake of Verified Carbon Units (VCUs) generated from the project.
SIPCO will manufacture and distribute 300,000 water purifiers to approximately 8,000 schools and institutions in Vietnam.
These recent sustainability-related projects will provide 2 million children with access to clean drinking water and reduce greenhouse gas emissions of 3 million tonnes of carbon dioxide over five years.
These transactions enhance the MoU established between Citi and the Vietnamese Ministry of Natural Resources and Environment in May 2022 on the ESG agenda towards net-zero carbon emission targets.
