Gia Lai Power has just achieved the first Green Finance Framework certification in Vietnam by CBI, paving the way for the issuance of green bonds.
The Green Finance Framework certified by the Climate Bond Initiative (CBI) is issued to Gia Lai Electricity Joint Stock Company (GEC) to comply with the Climate Bond Standard.
The Capital Markets Department of GEC and TTC Group - a major shareholder of GEC - said that the certification is a testament to the commitment to sustainable development and transparency for the upcoming green bond issuance. Gia Lai Electricity plans to issue green bonds to finance two offshore wind power projects, Tan Phu Dong 1 and 2, with a total capacity of 150 MW.
Tan Phu Dong 2 wind power project in Go Cong Dong, Tien Giang of Gia Lai Dien. Photo: GEC
The Law on Environmental Protection 2020 defines green bonds issued by the government, local authorities, or enterprises following the law on bonds, to mobilize capital for environmental protection activities and investment projects with environmental benefits. Green bonds operate under the same mechanism as conventional bonds but add environmental criteria for funded projects.
At the international level, there are two leading sets of principles that guide the promotion of transparency, sustainability, and efficiency in the mobilization and management of green bond capital, including the "Green Bond Principles" (GBP) issued by the International Capital Markets Association (ICMA) and the International Climate Bond Standard (CBS) administered by the CBI.
Mr. Nguyen Quang Thuan, General Director of FiinRatings - a certified unit authorized by the Climate Bond Initiative - assessed that Dien Gia Lai has achieved the CBI's Green Finance Framework certification as a prerequisite for strong growth and investment in sustainable finance initiatives in Vietnam.
Mr. Sean Kidney, General Director of the Climate Bond Initiative, assessed that this certification of Dien Gia Lai shows the strong development of the sustainable financial market in Vietnam.
"We look forward to supporting more Vietnamese issuers to build a financial framework in line with international practices and contribute to the global climate change process," he declared.
Before Dien Gia Lai, successful green bond issuers in Vietnam owned ICMA certification. For example, in July 2022, Electricity Finance Joint Stock Company (EVN Finance) completed the first green bond in Vietnam under ICMA's Green Bond Principles, with a total value of more than VND 1,700 billion.
Similarly, on October 25, 2023, BIDV became the first bank to issue green bonds according to ICMA's Green Bond principles, with a scale of VND 2,500 billion.
Via VnExpress