This is the first green bond transaction in the aquaculture sector in Asia and the first local currency (VND) green bond issued by a non-financial institution corporate. The bonds were oversubscribed and were invested by Manulife Vietnam and AIA Vietnam, extending their strong association with GuarantCo-guaranteed bonds in Vietnam and in the Southeast Asia region. This is GuarantCo’s first transaction in aquaculture infrastructure and its fourth in Vietnam.

The proceeds will enable the next stage of the company’s growth through the development of pangasius fish processing, as well as seeding and hatching facilities. This is in response to a projected 1.4 per cent growth in global fish consumption and increasing export demand, specifically for Vietnamese pangasius, from traditional and new markets in the coming years. The growth will increase income generation for local farming households who are contracted to cultivate the fish.

In accordance with its green bond framework, IDI will commit to allocating capital raised from the green bonds to eligible green projects with the goal of promoting sustainable and environmentally friendly pangasius farming and production. The sustainable fish processing practices are in alignment with international sustainability standards set by the Aquaculture Stewardship Council (ASC) and Best Aquaculture Practices (BAP). These standards are crucial for Vietnamese companies seeking to access markets with robust sustainability requirements and to meet a growing demand for eco-friendly and responsibly sourced products.

The transaction aligns and contributes to multiple sustainable development goals (SDGs), including SDG 14 (Conserve and sustainably use the oceans, seas and marine resources for sustainable development). The successful issuance of this green bond seeks to further demonstrate the untapped market potential for green financing instruments to help address the significant investment and infrastructure financing gap in the country.

The bond is structured in alignment with ICMA’s Green Bond Principles and has been independently assessed by FiinRatings, which provided a second party opinion on the issuance. This is a continued collaboration between GuarantCo and the Global Green Growth Institute (GGGI) on green bond issuances following the EVN Finance green bond in 2022, which was Vietnam’s inaugural local currency, internationally verified, thematic corporate bond. In this transaction, GGGI provided IDI Sao Mai with essential technical support and strategic recommendations on developing the green bond framework, with a focus on enhancing sustainable seafood farming and processing.

IDI Sao Mai has been supported by technical assistance grants from PIDG to fund the appointment of health, safety and environmental social (HSES) and financial model consultants to provide advisory services that were key to ensuring the transaction and projects have been executed in line with market best practices.

Nishant Kumar, Managing Director, Asia Investments at GuarantCo and Head of Coverage – Asia at PIDG, said:

“We are excited to close the transaction with IDI Sao Mai, our first in the agricultural infrastructure sector. This project will make a significant impact towards achieving two Sustainable Developments Goals. We are hopeful that following the successful issuance of EVNF’s first internationally verified green bond in Vietnam, this transaction will further address infrastructure financing gaps in Vietnam, through demonstration and replication effects of use of green bonds for non-financial companies in Vietnam. PIDG, through GuarantCo, continues to seek out opportunities to mobilise emerging markets to deliver against our climate action aims aligned with the PIDG 2030 strategy.”

Le Van Canh, Chief Executive Officer of International Development and Investment Corporation (IDI), stated:

“IDI Company stands at the forefront of Vietnam’s pangasius full-cycle production and trading sector. We are privileged to announce the issuance of a green bond, backed by GuarantCo, totalling VND 1,000 billion. This transaction demonstrates that IDI has successfully met the rigorous standards of the international financial framework, reaffirming our commitment to sustainable development, intertwined with environmental and social considerations. We take pride in being the first entity in Vietnam and globally within the fisheries sector to attain Green Bond certification. IDI is resolutely committed to upholding the highest performance standards and contributing to sustainable development. We aspire for this certification to serve as a benchmark for growth and replication within the Vietnamese business community.”

Tina Nguyen, CEO of Manulife Vietnam, said:

“As a member of a global financial corporation operating in Vietnam, we have always been committed to promoting a better, wealthier and greener Vietnam. In fact, as a responsible investor, we have been pioneering in ESG investing for the sustainable development of Vietnam. Our investment in this green bond, in addition to our previous green investments, is another demonstration of Manulife’s commitment to this goal. With a long-term commitment to Vietnam, we hope to continually support the Government of Vietnam in achieving its net zero carbon emission target.”

Andrew Loh, CEO of AIA Vietnam, stated:

“AIA is dedicated to delivering long-term value by investing in companies committed to sustainable outcomes. As of November 2024, our investments in Green, Social, and Sustainable Bonds have reached USD 6.3 billion. We are honoured to be a long-term trusted partner of GuarantCo in promoting sustainable investment in Vietnam. In 2022, AIA Vietnam participated in the first-ever partially guaranteed and internationally verified green bond of EVNFinance, guaranteed by GuarantCo. This year, we have reaffirmed our commitment by closing another green bond transaction with IDI, also guaranteed by GuarantCo, in compliance with the Green Bonds Principles published by the ICMA. As part of our ESG strategy at AIA, we prioritise investments that benefit the environment and society, aligning with our purpose to help people live Healthier, Longer, Better Lives.”

Lê Mạnh Hùng, CEO of VCBS, said:

“We are pleased that VCBS collaborated in this transaction alongside the issuer (IDI), GuarantCo, and other financial institutions, contributing to the successful bond issuance. As lead arranger and bond offering dossier advisor, marking our second transaction with GuarantCo and GGGI, VCBS is confident that this green bond issuance will continue to highlight the financial strength, capacity, and operational potential of Vietnamese Issuers that are advancing toward international standards. The seafood industry serves as a cornerstone of Vietnam’s agricultural sector, with substantial growth in pangasius and shrimp production and exports to global markets. Therefore, IDI’s commitment to sustainable aquaculture practices, combined with efforts to mitigate marine pollution for issuing green bond shall become a model for other enterprises in the sector and is set to lead the development of innovative and sustainable financial products within the Vietnamese market.”

Helena McLeod, Acting Director General, Global Green Growth Institute (GGGI), said:

“As Vietnam aims to establish itself as the world’s leading seafood processing center, securing access to green finance is essential for the necessary upgrades to its sustainable infrastructure. GGGI is pleased to advise IDI Sao Mai and collaborate with GuarantCo on this groundbreaking transaction, thanks to the support from the Grand Duchy of Luxembourg, which will enable more key players in the market to access green capital and enhance the sustainability of Vietnam’s seafood processing and aquaculture industry. As a trusted advisor committed to promoting green growth in emerging markets, GGGI remains dedicated to working alongside vital stakeholders, including the Vietnamese government, local enterprises, and investors in the capital market, to support Vietnam in achieving its net-zero target by 2050.”

Nguyen Quang Thuan, CEO of FiinRatings, stated:

“We are pleased to have contributed to the successful green bond issuance by IDI, marking the first such local currency bond transaction by a non-financial issuer in Vietnam. This assessment represents our second-party opinion on their green bond framework, which aligns with the ICMA’s Green Bond Principles. The issuance not only promotes sustainable aquaculture practices at IDI but also fosters the growth of Vietnam’s green finance ecosystem. As a leading agency for credit rating and green bond verification in Vietnam, we take pride in enhancing the transparency of sustainable finance practices, thereby strengthening market integrity.”

 

Learn more.