- Date written
- December, 2023
- Contact for guarantco
- Marjolein van Kampen
- Communications Director
- +44 (0)738 8857097
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.
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.”