With this issuance, BIDV became the first organization to successfully issue sustainable bonds in the domestic market. Previously, in 2023, BIDV was also the first Vietnamese commercial bank to successfully issue VND 2,500 billion in green bonds. Through two issuances of green and sustainable bonds in two consecutive years, with a total successful offering value of VND 5,500 billion (~ USD 220 million), BIDV continues to maintain its position as the leading credit institution in ESG bond issuance in the domestic market, while also contributing to the development of sustainable finance in Vietnam.
BIDV’s sustainable bonds have an unsecured,unguaranteed structure. The fact that the sustainable bonds were 100% subscribed by investors demonstrates a high level of confidence in BIDV’s capacity and reputation. In addition, the issuance attracted leading institutional investors, including insurance companies, commercial banks, fund management companies, and enterprises. BIDV will use the bond proceeds to lend to customers/projects that have a positive impact on the environment and society, with evaluation criteria specified in BIDV’s Sustainable Bond Framework.
BIDV leads the market in financing green projects
Mr. Doan Viet Nam, Deputy General Director of BIDV, said, “BIDV pays great attention to ESG and has a clear strategy to align its business operations with the promotion of green credit growth and the management of ESG risks in credit activities… With our role as a leading financial institution and our determination to support the government in achieving net zero emissions by 2050, we hope that our pioneering issuance of ESG bonds in general and the 2024 sustainable bonds in particular, in accordance with international standards, will contribute to the green transformation of the economy and the building of a green and sustainable future.”
In both the green and sustainable bond issuances, BIDV received technical support from the World Bank in various aspects: developing the bond framework, establishing eligibility criteria, issuing external review opinions, information disclosure, and consulting on appropriate implementation plans to best meet market expectations. Ms. Mariam Sherman, World Bank Country Director for Vietnam, Cambodia, and Laos, stated, “The successful issuance of Vietnam’s first sustainable bond by BIDV, following the green bond issuance in 2023, is a testament to our joint efforts and an important milestone in the development of the green finance market in Vietnam on the path toward a low-carbon economy. The World Bank is proud to accompany Vietnam’s green growth ambition. Through close collaboration with government agencies, financial institutions, and leading enterprises, we aim to contribute to a sustainable and prosperous future for Vietnam.”
Recognizing the role and significance of sustainable growth for the overall Vietnamese economy, BIDV has identified “towards sustainable development” as a cross-cutting goal in its business strategy for the 2021-2025 period, with a vision toward 2030. The ESG bond issuance serves as a foundation for BIDV to continue focusing its resources on researching and developing similar products to meet the diverse needs of its customers, as well as contributing to the realization of the Vietnamese government’s sustainable development orientation.
Currently, BIDV leads the market in financing green projects. As of June 30, 2024, BIDV’s green credit balance reached VND 75,459 billion, and its medium and long-term loans for projects with social elements amounted to VND 76,059 billion.
BIDV has extensive experience and capabilities in receiving and implementing international trust-funded programs and projects that promote sustainable development goals.
BIDV’s Sustainable Bond Framework was highly evaluated by Moody’s Investors Service, receiving a SQS2 (very good) rating, the second-highest of five possible ratings. According to Moody’s, “BIDV has developed a formal Sustainable Bond Framework that complies with the principles and guidelines of the International Capital Market Association (ICMA) and demonstrates significant contributions to sustainable development.”
“Unleashing the Power of IR: Unlocking Capital for a Sustainable Future”
Around 60% of listed companies in Vietnam have achieved compliance in IR practices. This is not merely a bridge between businesses and investors, but it also serves as a “key” to optimizing capital and fostering sustainable business growth.
The Green Age of IR: A “Greening” Strategy and Capital Attraction for Vietnamese Enterprises
At the IR View seminar on ‘greening’, held as part of the IR Awards 2024 ceremony on the morning of September 24, leaders from VietinBank, PAN Group, Vinamilk, and ACB revealed their secrets to attracting international capital. They shared insights on effective Investor Relations (IR) practices and their strategies for sustainable development in the new era of a green economy.
The Power of Words: Illuminating the ‘Station of Hope’ for Community Champions
The Human Act Prize 2024, an initiative by Nhan Dan Newspaper, was recently unveiled at the Sheraton Hanoi West Hotel. Building on the success of its inaugural edition, this year’s award continues to seek out and honor the selfless dedication and commitment of individuals and organizations across Vietnam.
Celebrating the Best IR Performing Listed Company of 2024
On the morning of September 24, the IR Awards 2024 Ceremony was held to announce the results of the IR Voting and honor listed companies with outstanding IR activities.
