Vietnam’s Techcombank has launched its green bond framework, making it the first private bank in the country to take this significant step towards sustainability.

The framework aligns with the International Capital Market Association’s Green Bond Principles, reinforcing the bank’s commitment, it says, to fostering sustainable development and supporting Vietnam’s transition to a greener economy. 

Importantly, the framework has been developed with support and technical advisory from the Global Green Growth Institute and is a guiding document that ensures that the proceeds raised from the issuance of green bonds will be used by the bank to finance projects that provide actual environmental benefits to Vietnam.

As well, the framework has been independently reviewed by S&P Global, one of the leading rating agencies, which has assessed the bank’s framework as “medium green”, the second-highest designation in their “shades of green” rating system. The eligible green activities under the bank’s framework have been assessed by S&P Global as “contributing to address some of the most acute environmental issues facing the country”.

Techcombank’s leadership in launching this green bond initiative signals a broader movement towards sustainable financing in the country. By mobilizing capital for green projects, the bank, it says, aims to play a pivotal role in advancing Vietnam’s environmental goals while enhancing investor confidence in the burgeoning green finance market.