GuarantCo, part of PIDG, and Standard Chartered collaborate to accelerate climate action in Vietnam during COP28

  • Date written
  • December, 2023

GuarantCo, part of the Private Infrastructure Development Group (PIDG), and Standard Chartered have signed a Memorandum of Understanding (MoU) during COP28 in Dubai announcing their intention to develop a climate-focused deal framework that aims to increase funding opportunities in Vietnam and accelerate climate action.

GuarantCo-part-of-PIDG-and-Standard-Chartered-Bank-collaborate-to-accelerate-climate-action-in-Vietnam-during-COP28

The framework will focus on transactions related to climate change, climate mitigation, energy transition, climate adaptation and climate resilience. Accordingly, Standard Chartered will mobilise between USD 200 million and USD 300 million of financing whilst GuarantCo is planning to allocate a maximum of USD 150 million of guarantee capacity (VND equivalent).

Through the MoU, GuarantCo and Standard Chartered will pursue initiatives that allow both companies to deliver on their respective net zero commitments and contribute towards the delivery of the Government of Vietnam’s climate strategy. In addition, the parties are also considering ways to jointly assist clients in meeting their sustainability strategies and financing their climate change, adaptation and mitigation ambitions.

The framework will be further developed with the aim being to reach a formal agreement in the first half of 2024. 

Philippe Valahu, Chair of the GuarantCo Board and CEO of PIDG, said:

“This framework is fully aligned with the recently launched climate action focused PIDG strategy 2030.  We are confident that the impact of this sustainability-focused deal framework will result in many initiatives that will make a significant impact towards positive climate action to the benefit of the people in Vietnam.” 

Layth Al-Falaki, CEO of GuarantCo, said:

“We are delighted to have signed this Memorandum of Understanding with Standard Chartered and to be able to mobilise guarantee capacity of up to the VND equivalent of USD 150 million to further climate resilience, mitigation and adaptation efforts in line with PIDG and GuarantCo’s aims.”

Marisa Drew, Chief Sustainability Officer of Standard Chartered, said:

“Our commitment to sustainable finance seeks to channel capital to where it is needed most in order to achieve net zero by 2050. Such work is underpinned by meaningful partnerships with clients and markets in transition. Through this framework, we seek to deliver real impact as part of Vietnam’s progressive sustainability agenda.”

Michele Wee, CEO of Standard Chartered Vietnam, said:

“We are proud to partner with GuarantCo to accelerate climate action in Vietnam. We believe that the scale of climate change challenge requires close collaborations between private sector and governments to ensure and achieve a just transition. Directing private capital or blended finance for climate mitigation and adaptation can help us achieve a just transition.”

Nguyen Thuy Hanh, Deputy General Director, Head of Corporate, Commercial and Institutional Banking of Standard Chartered Vietnam, Philippe Valahu, CEO of PIDG and Chair of the GuarantCo Board, and Michele Wee, CEO of Standard Chartered Vietnam.

NOTES TO EDITORS

About GuarantCo

GuarantCo mobilises private sector local currency investment for infrastructure projects and supports the development of financial markets in lower income countries across Africa and Asia. GuarantCo is part of the Private Infrastructure Development Group (PIDG) and is funded by the governments of the United Kingdom, Switzerland, Australia and Sweden, through the PIDG Trust, the Netherlands, through FMO and the PIDG Trust, France through a stand-by facility and Global Affairs Canada through a repayable facility. GuarantCo is rated AA- by Fitch and A1 by Moody’s. Since 2005, GuarantCo has enabling USD 6.2 billion of total investment and USD 5.2 billion of private sector investment, giving 45.2 million people improved access to infrastructure and creating around 229,000 jobs. GuarantCo’s activities are managed by GuarantCo Management Company which is part of Cardano Development www.guarantco.com

About PIDG

The Private Infrastructure Development Group (PIDG) is an innovative infrastructure project developer and investor which mobilises private investment in sustainable and inclusive infrastructure in sub-Saharan Africa and south and south-east Asia. PIDG investments promote socio-economic development within a just transition to net zero emissions, combat poverty and contribute to the Sustainable Development Goals (SDGs). PIDG delivers its ambition in line with its values of pioneering, partnership, safety, inclusivity and urgency.

PIDG offers Technical Assistance for upstream, early-stage activities and concessional capital; its project development arm – which includes InfraCo Africa and InfraCo Asia – invests in early-stage project development and project and corporate equity. PIDG credit solutions include EAIF (the Emerging Africa Infrastructure Fund), one of the first and more successful blended debt fund in low-income markets; GuarantCo, its guarantee arm that provides credit enhancement and local currency solutions to de-risk projects; and a growing portfolio of local credit enhancement facilities, which unlocks domestic institutional capital for infrastructure financing.

 

Since 2002, PIDG has supported 211 infrastructure projects to financial close, which provided an estimated 222 million people with access to new or improved infrastructure. PIDG is funded by the governments of the United Kingdom, the Netherlands, Switzerland, Australia, Sweden, Germany and the IFC. www.pidg.org

About Standard Chartered

We are a leading international banking group, with a presence in 59 of the world’s most dynamic markets and serving clients in a further 64. Our purpose is to drive commerce and prosperity through our unique diversity, and our heritage and values are expressed in our brand promise, here for good. Standard Chartered PLC is listed on the London and Hong Kong Stock Exchanges. For more stories and expert opinions please visit Insights at sc.com. Follow Standard Chartered on Twitter, LinkedIn and Facebook.