The Singapore Exchange Centre. BIM Land Real Estate was the first Vietnamese firm to issue green bonds in the exchange, with an issuance of $200 million in 2021. — Photo thesaigontimes.vn

HÀ NỘI — FiinGroup has announced that it has been officially approved by the Climate Bonds Initiative (CBI) as the first authorised firm in Việt Nam, the sixth in Asia and one of 59 agencies worldwide to verify green bonds issued by Vietnamese businesses.

CBI is an international investor-focused and not-for-profit organisation working to mobilise the US$100 trillion bond market for global climate change solutions.

The organisation screens green financial instruments under the Climate Bonds Classification to determine suitability and assess industry eligibility criteria for certification, thereby enhancing financial benefits for issuers and investors.

CBI certification is used and valid globally. Vietnamese organisations certified by CBI will be at an advantage when accessing bond capital mobilised from global investment funds.

“The benefits of participating in CBI’s green programme are massive. It is a great opportunity for participants to access large capital sources around the world at a more reasonable capital cost as well as to promote their profiles in the capital market”, said Nguyễn Minh Tú, Managing Director of FiinRatings at FiinGroup.

Green finance and green bonds are gaining traction and rising significantly worldwide. Notably, green bond issuance over the world hit up to $505 billion last year and is expected to record $1 trillion this year.

In Việt Nam, green bonds reached a total scale of $284 million by early 2021, comprised of quasi-sovereign bonds ($23.4 million), municipal bonds ($3.6 million), and two green loans ($71 million and $186 million respectively). — VNS