GuarantCo has provided a guarantee for green bonds issued by a Vietnamese catfish producer.
International Development and Investment Corporation (IDI) – a subsidiary of Sao Mai Group and a producer and exporter of a type of fish called pangasius – issued VND1 trillion ($40 million) of green bonds.
The bonds are guaranteed by GuarantCo, which is part of the Private Infrastructure Development Group (PIDG), funded by governments including the UK, Switzerland, Australia and Sweden.
The bonds were oversubscribed, with buyers including Manulife Vietnam and AIA Vietnam.
This is the first green bond transaction in the aquaculture sector in Asia and the first green bond issued in Vietnamese Dong by a non-financial institution corporate.
It is GuarantCo's first transaction in aquaculture infrastructure and its fourth in Vietnam.
The proceeds will enable the company to grow through the development of pangasius fish processing, seeding and hatching facilities that align with international sustainability standards set by the Aquaculture Stewardship Council (ASC) and Best Aquaculture Practices (BAP).
A press release claimed the issuance contributes to UN Sustainable Development Goal 14 – to conserve and sustainably use the oceans, seas and marine resources for sustainable development.
FiinRatings – a technical collaboration partner of S&P Global Ratings – provided a second party opinion on the issuance.
Global Green Growth Institute (GGGI) provided IDI with technical support and strategic recommendations on developing the framework.
IDI also received technical assistance grants from PIDG to fund "the appointment of health, safety and environmental social and financial model consultants to provide advisory services".
Lê Mạnh Hùng, CEO of VCBS, which was lead arranger and 'bond offering dossier advisor', said: "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.
"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".
In 2022, GuarantCo provided a VND1,150 billion partial credit guarantee to support a VND1,725 billion green bond issuance by EVN Finance, a non-bank financial institution in Vietnam. The proceeds were to allow EVN to issue longer term loans to finance green infrastructure, including loans for rooftop and ground-mounted solar in Vietnam.
The deal also attracted investment from Manulife and AIA and saw VCBS act as lead arranger.
PIDG will be speaking at a conference on blended finance on 4 and 5 February in Paris. It is being hosted by the OECD in partnership with Environmental Finance. See the agenda here. CoP-PF4SD Conference 2025: Mobilising private finance towards 2030 and beyond
To register email events@fieldgibsonmedia.com
Channels:Blended Finance