Vietcombank issues VNĐ2 trillion in green bonds, advancing Việt Nam’s green economy
Vietcombank issues VNĐ2 trillion in green bonds, advancing Việt Nam’s green economy
Vietcombank has successfully issued VNĐ2 trillion (US$78.7 million) in green bonds, marking a significant step forward in supporting environmental protection and projects with positive environmental impacts.
The proceeds from this issuance will fund projects across key sectors: renewable energy, sustainable transport, water management, green buildings, waste management, sustainable agriculture, forestry and fisheries, and energy efficiency. — VNA/VNS Photo |
This landmark issuance represents Vietcombank’s first foray into the green bond market, underscoring the bank’s commitment to Environmental, Social, and Governance (ESG) principles. It also highlights Vietcombank’s pioneering role in sustainable finance, contributing to the growth of eco-friendly projects in Việt Nam.
Vietcombank is the first bank in Việt Nam to issue green bonds that comply with local regulations and voluntarily align with the Green Bond Principles set forth by the International Capital Market Association (ICMA). The framework for this issuance was developed with guidance from the Global Green Growth Institute (GGGI), an international organisation focused on sustainable development. Vietcombank’s green bond offering has received an impressive Medium Green rating from S&P Global, which is the second highest level in S&P Global’s 'Shade of Green' rating system. This rating reflects the high standards of project selection, fund management, and governance, demonstrating Vietcombank’s transparency and commitment to sustainable finance.
Acting General Director of the Global Green Growth Institute (GGGI),Helena McLeod, said that the successful placement of these bonds not only signalled strong investor demand for green projects but also reflected the growing market potential to mobilise private sector capital to support Việt Nam’s transition toward net-zero emissions.
Vietcombank’s Deputy Director of the Capital and Market Division, Vũ Quang Đông said: “As a leading commercial bank, Vietcombank has always prioritised sustainable development and environmental protection in its core strategy. Over the past few years, we have significantly increased our support for environmentally-friendly projects. Between 2020 and 2023, our green credit portfolio grew nearly fourfold, from VNĐ11.7 trillion in 2020 to VNĐ46.1 trillion by the end of 2023.
"We recognise the growing demand for investment in green projects, and green bonds serve as an effective mechanism to mobilise capital for these initiatives at competitive rates. The proceeds from this issuance will fund projects across key sectors: renewable energy, sustainable transport, water management, green buildings, waste management, sustainable agriculture, forestry and fisheries, and energy efficiency.
"Going forward, Vietcombank will continue to prioritise green credit, reinforcing its role as a leader in sustainable finance. Through the issuance of green bonds, we aim to contribute to Việt Nam’s long-term sustainable development and to promote the growth of the Vietnamese green bond market," he said.
