Vietcombank has achieved a significant milestone in Vietnam's green bond market by successfully issuing VND2 trillion (approximately $80 million) of green bonds. This issuance not only showcases Vietcombank's leadership in the green finance sector but also aligns with Vietnam's commitment to green growth and net-zero emissions by 2050.
Driving Vietnam's Green Transition with Green Bond Success
Green Bond Framework and Global Expertise
In its continuous pursuit of catalyzing the green finance sector in Vietnam, the Global Green Growth Institute (GGGI) brought its extensive global and local expertise to assist Vietcombank in developing the green bond framework for this landmark issuance. The framework adheres to both the Green Bond Principles of the International Capital Market Association (ICMA) and Vietnamese law, and it received a Medium Green rating from S&P Global, the second-highest level in their six-tier Shade of Green ratings scale. This demonstrates Vietcombank's commitment to environmental sustainability and compliance with international standards.GGGI's acting director-general, Helena McLeod, expressed pride in partnering with Vietcombank on this green bond issuance. She emphasized that this success reflects the growing investor demand and confidence in green growth projects, indicating the strong market potential for directing private capital towards Vietnam's net-zero transition. With the support of the Grand Duchy of Luxembourg, this issuance marks an expansion of GGGI's technical assistance towards Vietnam's net-zero 2050 goal.Allocation of Proceeds and Environmental Impact
Under the green bond framework, the proceeds will be allocated to seven key sectors, including renewable and clean energy, sustainable transport, sustainable water management, green construction, waste management and resource efficiency, sustainable agriculture – forestry – fisheries and biodiversity conservation, and energy efficiency. This allocation is crucial as it aims to address the increasing demand for investment in environmentally friendly projects in the country, supporting Vietnam's net-zero transition.S&P Global noted that Vietcombank's green credits contribute significantly to addressing the most urgent environmental issues facing the country, such as carbon emissions and pollution. This shows the direct impact of the green bond issuance on the environment and the country's sustainable development.Vietcombank's Leadership and Investor Response
Vu Quang Dong, Vietcombank's acting head of global markets, emphasized the bank's responsibility in developing the green financial market and promoting sustainable development. He shared that the issuance of green bonds worth $80 million was successful in a short time, receiving positive responses from investors and reputable international organizations. This affirms the quality and leading role of Vietcombank in the green bond market.Vietcombank is committed to actively contributing to building a sustainable and environmentally friendly economy. They will make efforts to promptly introduce new products and steps to meet the trend of green finance and a green economy.GGGI's Growing Technical Support
The successful issuance of Vietcombank's green bonds adds to GGGI's growing technical support for issuances of green bonds across sectors in Vietnam. This support is part of the Vietnam Green Bond Readiness Programme, funded by the government of Luxembourg, which aims to foster the development of a robust green bond market in Vietnam. GGGI's expertise and assistance play a crucial role in promoting green finance and sustainable development in the country.