MSB secures $100 million FMO facility for sustainable initiatives

November 07, 2023 | 15:48

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Vietnam Maritime Commercial Joint Stock Bank (MSB) solidified its commitment to sustainable finance by signing an MoU on November 2 with the Dutch Entrepreneurial Development Bank (FMO). The agreement marks a strategic partnership for mid to long-term collaboration, aiming to amplify MSB's sustainable lending practices.

MSB secures $100 million FMO facility for sustainable initiatives

The FMO, established in 1970 with a 51 per cent stake held by the Dutch government, has been instrumental in propelling sustainable private sector growth in developing markets.

This tranche of financing, in collaboration with the Dutch Fund for Climate and Development, carries a potential nine-year term, earmarked for bolstering small and medium-sized enterprises and eco-friendly projects. The funding is part of a broader initiative to align MSB's risk management with more stringent international standards.

An MSB spokesperson said, "The technical expertise from our global partners will be a catalyst for our credit product innovation, particularly enhancing our sustainable finance offerings."

The initiative underscores MSB's dedication to environmental, social, and governance standards, a cornerstone of the bank's strategic intent to integrate such considerations into their operational ethos. In pursuit of a greener credit portfolio, MSB is honing in on sectors including renewable energy, climate change mitigation, and carbon reduction technologies. As of June 2023, MSB has instituted an environmental and social risk framework into its credit review procedures.

"The MoU with FMO is a testament to MSB's enhanced strategic business capabilities. It sets the stage for future financial backing from reputable international entities, advancing Vietnam's collaborative ties and underpinning the government's 2050 net-zero emission ambition," an MSB executive said.

FMO to provide $90-million credit package to Loc Troi Group

Seeing huge potential in Loc Troi Group's sustainable practices and advanced agricultural expertise, the Dutch Entrepreneurial Development Bank (FMO) is supporting the company with a credit package worth $90 million.

MSB inks $30 million loan agreement with Proparco on green projects

Vietnam Maritime Commercial Joint Stock Bank and Proparco, a development finance institution partly owned by the French Development Agency, inked a loan cooperation agreement worth $30 million with a 5-year term on December 16. This agreement is set to support financial resources for Vietnam's green projects.

By Nhat Minh

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