FiinGroup is pleased to announce: FiinGroup has been officially approved by the Climate Bonds Initiative (CBI) as the first authorized company in Vietnam, the 6th in Asia and one of 59 global agencies to verify green bonds issued by Vietnamese businesses when participating in CBI's program.
CBI is an international investor-focused organization founded with the active participation of various financial institutions including ADB, aiming to mobilize $100 trillion bond market for global climate change solutions, including Vietnam.
CBI performs market analysis, policy research, market development; advises governments and regulators; and administers the Climate Bonds Standards and Certification Scheme. The organization also screens green financial instruments under the Climate Bonds Classification to determine suitability and assess industry eligibility criteria for certification, thereby enhancing the financial benefits not only for the issuers but also the investors.
Vietnamese businesses which obtain certification from CBI will have substantial potential benefits to access bond capital mobilized from investment funds around the world. CBI certification is the green bond standard/label that is used and valid globally.
“The benefits of participating in CBI's green bond program are massive. It is a great opportunity to access large capital sources around the world at a more reasonable capital cost as well as promoting the enterprise's profile in the capital market. We are working with CBI to obtain the best guidance and support for businesses and organizations in Vietnam while participating in this program” - Mr. Nguyen Minh Tu – Managing Director of FiinRatings, Credit Ratings Department at FiinGroup said.
Green finance and green bonds are gaining more popularity and increasing significantly around the world. Green bond issuance over the world was recorded to be at 505 billion USD in 2021 and is expected to reach 1 trillion USD in 2022, according to experts from Morgan Stanley. Particularly in Vietnam, green bonds reached an issuance scale of 284 million USD by early 2021 through 4 issuances including a quasi-sovereign bond (USD 23.4 million), a municipal bond ($3.6 million) and two green loans ($71 million and $186 million respectively).
Vietnamese industries are receiving great attention from CBI and international investors interested in renewable energy, water resources, green agriculture and waste treatment industries.
The legal system on green finance in Vietnam has gradually been improved and developed. The Prime Minister, the Ministry of Finance, and the State Bank of Vietnam have issued multiple national policies and action plans to promote green economy growth. At the United Nations Climate Change Summit in 2021 in Europe (COP26), the Prime Minister of Vietnam also made a commitment to achieve "zero" net emissions by 2050.
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