Ha Noi, Viet Nam, November 27, 2024 – Promoting a new frontier for green finance in Viet Nam, Global Green Growth Institute (GGGI) brings its expertise to provide technical support for the debut green bond issuance by the International Development and Investment Corporation (IDI), a subsidiary of Sao Mai Group and a leading sustainable fish export company in Viet Nam. This issuance of VND 1,000 billion (USD 40 million equivalent) marks the first green bond by a non-financial institution corporate issuer in the aquaculture sector in Viet Nam. The issuance is fully guaranteed by GuarantCo, part of the Private Infrastructure Development Group (PIDG), and subscribed by Manulife and AIA. 

Viet Nam’s seafood industry plays a vital role in the national economy, currently employing over 3.9 million people and exporting to over 160 markets worldwide. With the industry-first green bond by a corporate issuer, IDI sets a precedent for how Vietnamese companies can access green finance to accelerate sustainable practices in the seafood industry for future-proof, sustainable growth.

Commenting on this, Helena McLeod, Acting Director-General of GGGI, said, “As Viet Nam 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 Viet Nam’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 Viet Nam in achieving its net-zero target by 2050.” 

With technical support and strategic recommendations from GGGI, the IDI Green Bond Framework focuses on sustainable fish processing practices, including water and energy use optimization, waste reduction, and by-products utilization in a closed-loop process to collectively lower the environmental footprint. Under the framework, the bond proceeds will finance the development of sustainable fish breeding and hatchery facilities and a new processing plant applying eco-friendly practices. IDI is dedicated to enhancing its supply chain traceability and renewable energy integration into its plants to approach international sustainability standards set by the Aquaculture Stewardship Council (ASC) and Best Aquaculture Practices (BAP). These are crucial standards for Vietnamese companies seeking to access international markets with best-practice sustainability requirements and to meet a growing demand for eco-friendly and responsibly sourced products. The framework aligns with the Green Bond Principles of the International Capital Market Association (ICMA) and was externally reviewed by FiinRatings.

Juhern Kim, Country Representative of GGGI to Viet Nam said: “The development of this green bond framework, the first of its kind by a corporate green bond issuer in this sector in Viet Nam, underscores IDI-Sao Mai Group’s commitment and leadership in adapting to the green economy. We look forward to seeing IDI take tangible steps to mainstream sustainable practices in seafood breeding and processing, contributing to the implementation of Viet Nam’s Green Growth Strategy and Action Plan.”

GGGI’s technical support for the issuance is part of the Viet Nam Green Bond Readiness Program, funded by the Government of Luxembourg, to foster the development of a robust green bond market in Viet Nam.

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.”/.