IFC supports SeABank to issue Vietnam’s first blue bond
The International Finance Corporation (IFC) is providing a US$150-million financing package to Southeast Asia Commercial Joint Stock Bank (SeABank) to boost a viable blue finance market, foster green bonds, and support smaller businesses.
This investment includes Vietnam’s first blue bond and the first green bond issued by a privately held commercial bank in the country.
In particular, IFC’s subscription in a blue bond of US$25 million will enable SeABank to expand its funding for sustainable economic activities related to oceans and water. IFC’s subscription in a green bond of US$50 million will help the bank increase its financing of green assets.
To further support green initiatives, IFC will provide a performance-based incentive of up to US$480,000 for retail borrowers to help offset the incremental costs associated with purchasing green housing units.
IFC’s loan of US$75 million to SeABank is also aimed at boosting financing for small and medium enterprises (SMEs), including women-owned businesses, to promote financial inclusion.
“IFC’s investment will help SeABank increase funding for initiatives that support the country’s climate and financial inclusion agenda,” said Le Thu Thuy, vice chairwoman of SeABank Board of Directors.
“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 Laos.
