- Date written
- December, 2025
- Contact for guarantco
- Alison Hicks
- Senior Communications Manager
- +44 (0)738 5551967
- [email protected]
- Contact for PIDG
- Cecilie Sorhus
- Chief of Staff and Head of Communications
- +44 (0)7917 302724
- [email protected]
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GuarantCo, part of the Private Infrastructure Development Group (PIDG), has provided a payment default guarantee to support Binh Thuan Plastic Group Joint Stock Company (BPG)’s landmark 7-year bond issuance programme, totalling USD 20 million equivalent in VND.
This transaction represents Vietnam’s first-ever credit-enhanced, certified green bond in the plastics sector, setting a new benchmark for climate-aligned financing and accelerating the country’s transition towards a circular economy.
Proceeds from an initial tranche will be deployed into the development of BPG’s new manufacturing facility in the Hung Yen Industrial Zone and into its recycled plastic pallet investment programme for leasing purposes, implemented by BPG through BPG Retail Joint Stock Company.
These investments are designed to scale sustainable manufacturing capacity and expand the circular use of recycled plastic materials across Vietnam’s logistics sector.
The transaction delivers significant contributions to the United Nations’ Sustainable Development Goals (SDGs), including:
- SDG 13: Advancing circular economy principles by scaling a resource-efficient pallet leasing model, reducing reliance on virgin plastics, cutting carbon emissions, and enabling manufacturing from secondary inputs.
- SDG 17: Mobilising domestic institutional capital from Vietnamese insurance funds alongside sponsor financing, strengthening partnerships for sustainable development.
- SDG 13: Supporting an innovative green business model and catalysing the continued growth of Vietnam’s green bond market.
The bond is fully aligned with the International Capital Market Association’s Green Bond Principles, June 2025 edition. The Green Bond Framework has been independently reviewed by FiinRatings, which provided a Second Party Opinion validating the environmental robustness and credibility of the issuance. This transaction builds on the ongoing collaboration between GuarantCo and the Global Green Growth Institute to expand green bond markets in emerging economies, following earlier successful issuances including EVNF, IDI Sao Mai and AquaOne.
GuarantCo’s ongoing collaboration with the financial advisor, Mirae Asset Securities, meant that this deal benefited further from replication and built upon previous successful transactions.
The programme will be executed in two tranches of USD 10 million each, with the first tranche issued this year and the second scheduled for 2026.
Nishant Kumar, Managing Director of Asia Investments at GuarantCo and Head of Coverage – Asia at PIDG, said:
“By successfully bringing this first-of-its-kind instrument to market, GuarantCo aims to demonstrate the untapped potential of green financing solutions to bridge Vietnam’s infrastructure investment gap. This is especially important in sectors not traditionally viewed as “green”, but where meaningful climate and circularity impacts can be unlocked through innovation. Notably, there is expected to be a measurable carbon reduction as a result of this transaction. This is our sixth transaction in Vietnam, further demonstrating PIDG’s long-term commitment to the market in alignment with our 2030 Strategy.”
Mr. Le Van Quang, Chairman of BPG said:
“The support and guarantee provided by GuarantCo for BPG’s USD 20 million bond issuance with 7-year tenor marks a significant milestone—not only for Binh Thuan Plastic Group, but also for Vietnam’s green capital market. We are proud to become the first bond in the plastics sector that fully aligns with ICMA’s Green Bond Principles, and the green bond framework has been developed with consults from GGGI Vietnam and an independent review by FiinRatings.
“The proceeds will enable BPG to accelerate our green industrial development strategy by implementing construction of the Hung Yen Manufacturing Factory and our recycled plastic pallet leasing model. All these projects aim to enhance sustainable production capacity, reduce dependence on virgin plastics, and promote a circular economy within the logistics sector.
“Beyond its financial significance, this represents an opportunity for BPG to demonstrate the role of a Vietnamese enterprise that dares to lead—meeting international standards of financial institutions and ready to contribute to the country’s green development goals. We look forward to working alongside the Vietnamese business community on the journey to elevate the nation’s global standing, affirm our capacity for innovation, and uphold our responsibility to society, the environment, and Vietnam’s sustainable future.”