IFC offers $150 million financing package to SeABank

The investment announced on June 25 entails Vietnam's first blue bond and the first green bond by a private commercial bank in the country.

As part of that, IFC's $25 million subscription in blue bonds will allow SeABank to expand its funding for sustainable economic activities associated with ocean and water (aquaculture and fisheries, water supply, among others).

IFC's $50 million subscription in green bonds will help the bank increase financing for green assets (green buildings, renewable energy, and energy efficiency).

As the implementing entity of the United Kingdom's Market Accelerator for Green Construction (MAGC) Program, IFC will provide a performance-based incentive of up to $0.48 million targeting retail borrowers to help offset the incremental greening costs associated with green housing units purchase.

Additionally, IFC's $75 million loan to SeABank is aimed at promoting financial inclusion through boosting financing for SMEs, including women-owned businesses.

"IFC's investment will help SeABank increase funding for initiatives that support the country's climate and financial inclusion agenda. We are proud to be issuing Vietnam's first blue bond and the first green bond by a private commercial bank. We look forward to working with IFC to further bolster our green and blue portfolio strategy," said Le Thu Thuy, vice chairwoman of SeABank's Board of Directors.

Alongside the investment, IFC will advise SeABank on adopting green and blue bond frameworks, while helping SeABank identify eligible green and blue assets and develop a pipeline.

"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's country manager for Vietnam, Cambodia, and Laos. "With investment in a leading player, IFC is establishing new asset classes while mobilising capital and strengthening the capacity of local financial institutions to drive increased climate finance in Vietnam."

The two parties have partnered since 2021 to expand small- and medium-sized enterprises lending via tailored products, increase climate finance access and international trade. With IFC's support, SeABank could develop an integrated ESG framework and prioritise funding for green projects, thereby promoting climate change mitigation and resource efficiency.

The Norwegian Investment Fund for Developing Countries (Norfund) on June 19 committed $30 million to Hanoi-headquartered SeABank (HSX: SSB) through a convertible loan, which can be converted into SeABank common shares within four years.

International Finance Corporation (IFC), a member of the World Bank Group, is considering investment of up to $150 million in Vietnam-based OCB.

International Finance Corporation (IFC), a member of the World Bank Group, has sold 84.8 million shares or an 8.2 per cent stake in ABBank, according to a planned divestment roadmap.