IFC Invests $150 Million in SeABank to Catalyze Blue and Green Finance in Viet Nam

The financing package includes Viet Nam’s first blue bond and the first green bond issued by a private commercial bank in the country.

The International Finance Corporation (IFC) is providing a $150 million financing package to Southeast Asia Commercial Joint Stock Bank (SeABank) in Viet Nam. This investment aims to foster a viable blue finance market, bolster green bonds, and support small businesses, particularly women-owned enterprises.

The financing package includes Viet Nam's first blue bond and the first green bond issued by a private commercial bank in the country. IFC's $25 million subscription in the blue bond will allow SeABank to fund sustainable economic activities related to the ocean and water sectors, such as aquaculture, fisheries, and water supply. Additionally, a $50 million green bond subscription by IFC will help SeABank finance green assets, including green buildings, renewable energy projects, and energy efficiency initiatives. The UK's Market Accelerator for Green Construction (MAGC) Program, implemented by IFC, will provide up to $0.48 million in performance-based incentives to retail borrowers, helping offset the costs associated with purchasing green housing units.

Furthermore, IFC's $75 million loan to SeABank aims to boost financing for small and medium enterprises (SMEs), including women-owned businesses, thereby promoting financial inclusion.

Viet Nam, one of the countries most vulnerable to climate change, experienced an economic impact equivalent to about 3.2 percent of GDP in 2020, with this figure expected to rise rapidly. The country's blue economy, critical to millions of Vietnamese along its 3,000-km coastline, is projected to contribute about 10 percent to GDP by 2030. Achieving net zero emissions by 2050 requires an estimated investment of about 6.8 percent of GDP annually, totaling $368 billion through 2040, with half expected from the private sector.

"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 the country's first blue bond, as well as the first green bond by a private commercial bank, and we look forward to working with IFC to further bolster our green and blue portfolio strategy," said Le Thu Thuy, Vice Chairwoman of SeABank Board of Directors.

In addition to the investment, IFC will advise SeABank on adopting green and blue bond frameworks and assist the bank in identifying eligible green and blue assets and developing a pipeline.

"Viet Nam'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 Viet Nam, Cambodia, and Lao PDR. "With this investment in a leading player, IFC is establishing new asset classes while mobilizing capital and strengthening the capacity of local financial institutions to drive increased climate finance in Viet Nam."

IFC has been instrumental in creating green and blue financing markets across Asia and the Pacific, supporting numerous financial institutions and companies in issuing their first green and blue bonds locally. Last year, IFC invested VND 3,500 billion (around $150 million) in Viet Nam's first local currency sustainability-linked bonds, issued by BIM Land Joint Stock Company and its subsidiary Thanh Xuan Joint Stock Company. With the new investment in SeABank, IFC's commitment to climate-related projects in Viet Nam reaches approximately $1 billion in long-term financing.

Since 2021, IFC has partnered with SeABank to expand lending to SMEs, increase access to climate finance, and boost international trade opportunities. IFC has also advised SeABank on developing tailored financial products for women-owned SMEs and implementing an integrated environmental, social, and governance (ESG) framework to enhance the bank's capacity to manage E&S risks. With IFC's support, SeABank has prioritized funding for green projects to promote climate change mitigation and resource efficiency.