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Hoa Binh- Xuan Mai has committed to allocating capital raised from the green bonds to green water treatment capital expenditure. The project comprises water intake, treatment, pipeline and distribution components with a total capacity of 150,000 cubic metre per day.

The project represents a key step in the Vietnamese government’s efforts to transition away from groundwater sources, which can be environmentally harmful. By using river water as feedstock, Hoa Binh – Xuan Mai is not only embracing a more sustainable environmental approach but also ensuring a higher quality of water, which will positively impact public health and well-being.

PIDG has provided VND 333.61 billion in equity, VND 1.2 trillion in bond guarantees and USD 119,000 in technical assistance grants for a two-phase project including a water treatment plant (Hoa-Binh Xuan Mai) in the Phu Tho province, and a 25-kilometer pipeline expansion project supplying treated water to Ha Noi City (Xuan Mai Ha Noi).

The bond, issued in 2024, was Vietnam’s first-ever verified green project bond in the water sector, the longest-tenor project bond issuance in the country to date, and the first project bond in Vietnam to receive an external credit rating from a local ratings agency.

PIDG also provided support through its project development and impact teams with a focus on international standards in compliance, as well as health, safety, environmental, and social (HSES) governance.