📋 Tender Overview
STATUS
Approved
MEMBER
Viet Nam
SECTOR
Multi-sector
E&S CATEGORY
FI
PROJECT NUMBER
000872
FINANCING
APPROVED FUNDING
USD75 million
FINANCING TYPE
Nonsovereign
TIMELINE
CONCEPT REVIEW
March 27, 2024
APPRAISAL REVIEW/FINAL REVIEW
May 17, 2024
FINANCING APPROVAL
June 17, 2024
OBJECTIVE
To support green and blue infrastructure development in Viet Nam using thematic capital market instruments issued under green and blue bonds framework.
DESCRIPTION
The proposed project envisages AIIB’s subscription of USD75 million in unlisted 5-year USD-denominated green bonds and blue bonds to be issued and privately placed by Southeast Asia Commercial Joint Stock Bank in Viet Nam. Total issuance size is expected to be USD 150 million with IFC financing the remaining USD 75 million. Out of the total size of USD150 million, the expected composition is USD100 million Green Bond and USD50 million Blue Bond. Both the green and blue bonds will adhere to the International Capital Market Association’s Green Bond Principles and IFC’s Blue Finance Guidelines respectively.
ENVIRONMENTAL AND SOCIAL INFORMATION
Environmental and Social Policy and Categorization. The Project is co-financed with the International Finance Corporation (IFC), and the Project’s environmental and social (E&S) risks and impacts are assessed in accordance with IFC’s Policy on Environmental and Social Sustainability Policy (PESS), and its Performance Standards and Exclusion List (EL). For a harmonized approach to addressing the E&S risks and impacts of the Project, and as permitted under AIIB’s Environmental and Social Policy (ESP), IFC’s PESS and EL are applicable to the Project in lieu of AIIB’s ESP. AIIB has reviewed the IFC’s PESS and EL and is satisfied that: (a) they are consistent with AIIB’s Articles of Agreement and materially consistent with the provisions of AIIB’s ESP, including AIIB’s Environmental and Social Exclusion List; and (b) the monitoring procedures that are in place are appropriate for the Project. The Project has been categorized as FI in accordance with IFC's PESS, and this is equivalent to Category FI, if AIIB’s ESP were applicable. Further, the Project complies with the ICMA’s Green Bond Principles and IFC’s Blue Finance Guidance.
Environmental and Social Management System (ESMS). Supported by IFC, SeABank has already developed an ESMS, the implementation of which is guided by international good practices, including IFC’s PSs and IFC’s Environmental, Safety and Health (EHS) Guidelines as well as IFC’s sector-specific Guidelines. The ESMS has adequate provisions for the assessment of both new greenfield investment opportunities as well as refinancing of brownfield ones. The IFC’s E&S Action Plan (ESAP) agreed for implementation with SeABank encompasses provisions for (i) developing and incorporating an E&S screening procedure into the existing ESMS for the green and blue bonds in order to screen out transactions with high E&S risks contemplated
