Sustainable Finance Framework

To further align with the international capital market best practice and support relevant global agreements, such as the UN Sustainable Development Goals (SDGs) and the Paris Agreement on climate change VPBank has developed a Sustainable Finance Framework. Within the framework, Sustainable Financing Instruments including but not limit to: Bond, Loan and Deposit.

VPBank emphasizes the importance of sustainable growth, especially in the context of requirements to respond to environmental and climatic conditions and ensure equality of financial access opportunities among customer groups increasing. VPBank always strives to enhance comprehensive and effective financial support, adhering to other responsible investment principles by ensuring environmental and social sustainability in credit granting activities.

VPBank provides comprehensive solution packages that bring financial and non-financial value to many SME businesses, including Women SMEs. In addition, VPBank focuses on financing customers in the field of renewable energy and production and business activities with low carbon emissions and adaptation to climate change, thereby contributing to economic green-growth transformation, environmental protection, preventing climate change, and improving the efficiency of resource and energy use.

VPBank has developed a Sustainable Finance Framework: the net proceeds of each VPBank’s sustainable financing instrument will be used to finance or refinance in whole or in part, new or existing eligible projects or assets that contribute to clear sustainability impacts under reliable Eligibility Criteria. Within the framework, sustainable financing includes:

1. Green Bond/Loan – funds allocated to green projects;
2. Social Bond/Loan – funds allocated to social projects and;
3. Sustainability Bond/Loan – funds allocated to a combination of green and social projects.
4. Other Sustainable Financial Instruments – include but not limit to Green/Social/Sustainability Deposit whereby proceeds are used for sustainable development projects and initiatives, allocated to Green/Social or combination of Green and Social Eligible Categories.

 

The Framework align with the four core components under the ICMA Green Bond Principles 2021 (GBP), the Social Bond Principles 2023 (SBP), the Sustainability Bond Guidelines 2021 (SBG); and the LMA Green Loan Principles 2023 (GLP), the Social Loan Principles 2023 (SLP):

1. Use of Proceeds
2. Process for Project Evaluation and Selection
3. Management of Proceeds
4. Reporting

 

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