AIIB to spend $75 million on green and blue SeABank bonds
In a landmark move for sustainable finance, the Asian Infrastructure Investment Bank (AIIB) has earmarked $75 million for the purchase of green and blue bonds from SeABank. This initiative marks a significant milestone, being the first ever blue bond to be issued out of Vietnam. In addition, this investment represents AIIB’s inaugural venture into blue bonds, showcasing a growing commitment to environmentally-focused financial instruments.
The injection of funds by AIIB is poised to bolster SeABank’s already robust capital structure, facilitating an expansion in lending for economic activities that have a sustainable connection to water bodies and the ocean. Moreover, this project will support the growth in green assets within the bank’s portfolio, including the financing of green buildings, endeavors in renewable energy, and projects aimed at enhancing energy efficiency.
As a founding member of the AIIB, Vietnam possesses extensive coastlines brimming with potential for the cultivation of a blue economy—a sector that promises significant prospects in line with SeABank’s investment targets. This collaborative effort between AIIB and the International Finance Corporation (IFC) aims to galvanize Vietnam’s sustainable economy advancements. These two prestigious institutions have pledged a cumulative investment of up to $150 million in the initiative, while also extending advisory support to SeABank on the green and blue bond issuance process, framework application, and development of the project pipeline.
Gregory Liu, AIIB’s Director General of Financial Institutions and Funds, Global, highlighted Vietnam’s focused approach towards mobilizing resources from financial and international credit institutions to buoy climate mitigation and adaptation efforts. “AIIB is very pleased to work with SeABank and IFC in this innovative transaction that will supplement ongoing measures to reduce greenhouse gas emissions and contribute to thematic capital market development. We look forward to seeing more issuances from other Vietnamese financial institutions,” Liu commented, expressing optimism for the future of such financial instruments in Vietnam.
Expressing gratitude and anticipation for the project’s potential, SeABank’s Vice Chairwoman of the Board of Directors, Le Thu Thuy, shared, “Following SeABank’s commitment to sustainability, one of our priorities is to issue the first blue bond in Vietnam and the first green bond by a private commercial bank in the country. We hope our partnerships with AIIB and IFC will augment SeABank’s capital sources to foster green credit and sustainable strategies associated with the green and blue economies.”
Through this strategic investment, AIIB demonstrates its unwavering commitment to aid SeABank in the expansion of partnerships and the implementation of projects that are not only sustainable but also generate significant socio-economic and environmental benefits. This initiative is seen as a pivotal contribution towards achieving national goals of a green transition and the realization of net-zero commitments, setting a precedent for future investments in sustainable financing.
