IFC provides financial package to SeABank

IFC is providing a financing package of US$150mn to Southeast Asia Commercial Joint Stock Bank (SeABank) to catalyse a viable blue finance market, foster green bonds and support smaller businesses in Vietnam

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. These include aquaculture and fisheries, water supply, etc. IFC's US$50mn subscription in green bonds will help the bank increase financing for green assets. 

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

Moreover, IFC's US$75mn loan to SeABank is aimed at promoting financial inclusion through boosting financing for SMEs, including women-owned businesses. 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 country manager for Vietnam, Cambodia, and Lao PDR. "With 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 Vietnam."