The Asian Infrastructure Investment Bank (AIIB) is investing US$75 million in the green and blue bonds issued by Vietnamese lender Southeast Asia Commercial Joint Stock Bank (SeABank).

The latest investment from the Beijing-headquartered financial institution is expected to further strengthen the Hanoi-based bank’s capital base to expand financing for sustainable economic activities linked to the sea and water, and grow green assets such as green buildings, renewable energy and energy efficiency.

AIIB is working with SeABank and the World Bank Group’s International Finance Corporation (IFC) in the transaction.

“This investment will supplement the ongoing measures to reduce greenhouse gas emissions and contribute to the thematic capital market development,” says Gregory Liu, AIIB director general of financial institutions and funds, global. “We look forward to seeing more issuances from other Vietnamese financial institutions in future.”

SeABank vice chairwoman Le Thu Thuy adds: “We hope the partnerships with financial institutions such as AIIB and IFC could add capital sources to foster green credit and sustainable strategies associated with a green and blue economy model.”

The investment was mobilized by the co-investor introduction of IFC, a strategic partner which has been supporting SeABank to implement sustainable projects associated with sustainable finance and financial inclusion, in partnership with the Australian government.

At the end of June, IFC provided a financing package of US$150 million which includes investments in SeABank’s blue and green bonds. IFC will also advise SeABank on the issuance of green and blue bonds, application of related frameworks, and pipeline development.

Simultaneously, SeABank secured a convertible loan worth US$30 million from the Norwegian Investment Fund for Developing Countries (Norfund), owned and funded by the Norwegian government. The loan can be converted into SeABank's common shares within four years. The investment aims to support micro, small and medium-sized enterprises, and individual customers in Vietnam.

Established in 1994, SeABank is one of the leading joint stock commercial banks in Vietnam with more than three million customers, nearly 5,500 employees and over 180 transaction points nationwide.