Techcombank launches first green bond framework

Techcombank, one of the leading banks in Vietnam, launched its Green Bond Framework, marking a pioneering milestone as the first private bank in Vietnam to take this significant step toward sustainability.

The framework aligns with the International Capital Market Association’s (ICMA) Green Bond Principles, reinforcing Techcombank’s commitment to fostering sustainable development and supporting Vietnam’s transition to a greener economy.

Jens Lottner, CEO of Techcombank said, “We are immensely proud to be the first private bank in Vietnam to publish a Green Bond Framework aligning with Green Bond Principles by ICMA. This initiative is a testament to our unwavering commitment to promoting sustainable finance while contributing to a greener future for Vietnam.”

Techcombank’s Green Bond Framework has been developed with support and technical advisory from the Global Green Growth Institute (GGGI). The Green Bond Framework is a guiding document which ensures that the proceeds raised from the issuance of green bonds will be used by Techcombank to finance projects that provide actual environmental benefits to Vietnam.

The framework has been independently reviewed by S&P Global, one of the leading rating agencies, which has assessed Techcombank’s Green Bond Framework as “Medium Green”, the second highest designation in their “Shades of green” rating system. This underscores the credibility, environmental benefits, and alignment of Techcombank’s green initiatives with global standards. The eligible green activities under Techcombank “Green Bond Framework” have been assessed by S&P as “contributing to address some of the most acute environmental issues facing the country”.

Techcombank’s leadership in launching this Green Bond affirms its commitment and signals a broader movement toward sustainable financing in the country. By mobilising capital for green projects, Techcombank aims to play a pivotal role in advancing Vietnam’s environmental goals while enhancing investor confidence in the burgeoning green finance market.

Vietnam Technological and Commercial Joint Stock Bank (Techcombank) is one of the largest joint stock banks in Vietnam, and a leading bank in Asia, with a vision to “Change banking, Change lives”. The bank pursues a proven customer-centric strategy in providing a broad range of retail and corporate banking solutions and services to help financially empower its customers. Techcombank has ~14.8 million retail and corporate customers, which it serves through a market-leading digital banking platform and mobile app, and extensive network of transaction service outlets at locations across Vietnam. The bank’s ecosystem approach, co-created through partnerships in multiple key economic sectors, adds further scale and differentiation in one of the fastest-growing markets in the world. Techcombank is rated AA- by FiinRatings, Ba3 by Moody’s and BB- by S&P, leading among Vietnam joint stock commercial banks.

Re-disseminated by  Wealth and Society