GuarantCo provides EVNFinance a VND 1,150 billion (c. USD 50 million) partial credit guarantee to support the issuance of Vietnam’s inaugural internationally verified green bond

  • Date written
  • July, 2022

  • First onshore, local currency, verified green bond in Vietnam
  • First partially guaranteed Vietnamese corporate bond invested into by institutional investors

GuarantCo provides EVNFinance a VND 1,150 billion (c. USD 50 million) partial credit guarantee

GuarantCo, part of the Private Infrastructure Development Group (PIDG), has provided a VND 1,150 billion (c. USD 50 million) partial credit guarantee to support a VND 1,725 billion (c. USD 75 million) bond issuance by EVN Finance Joint Stock Company (EVNFinance), a premier non-bank financial institution in Vietnam. This landmark transaction is Vietnam’s inaugural onshore, local currency, internationally verified green bond. It is also the first-ever partially guaranteed corporate bond that has attracted institutional investors in the country including Manulife and AIA. Vietcombank Securities (VCBS) a leading investment bank and securities firm in Vietnam acted as the mandate lead arranger on the transaction.

The bond proceeds will allow EVNFinance to issue longer term loans to finance capital expenditure of green infrastructure aligned with the company’s Green Bond Framework including loans towards the fast-growing rooftop and ground-mounted solar sub-sectors in Vietnam. The green transaction contributes to Sustainable Development Goal (SDG) 7 (ensure access to affordable, reliable, sustainable, and modern energy for all) by enhancing Vietnam’s energy and climate resilience. Through EVNFinance’s financing of the solar sector there will be a reduction in the national grid’s dependence on fossil fuels as well as its emission intensity. The rooftop solar solutions supported by EVNFinance will further benefit the wider economy by providing commercial and industrial end-users with access to an alternative form of energy, which is not only cleaner but also cheaper.

GuarantCo worked alongside the Global Green Growth Institute (GGGI), an inter-governmental international development agency, which provided EVNFinance with technical assistance structuring the green bond and assisted in the third-party verification of EVNF’s Green Bond Framework. The support was made possible through a technical assistance grant under the GGGI’s Vietnam Green Bond Readiness Programme supported by the Ministry of Finance, the Government of Vietnam and the Government of Luxembourg. GuarantCo and VCBS played an important role in attracting investors and coordinating the transaction, contributing to the success of a new financial product in the local market, one which could be replicated across other similar transactions in Vietnam.

This transaction demonstrates PIDG and GuarantCo’s long-term commitment towards Vietnam and is a hallmark of GuarantCo’s mandate to develop local capital markets and crowd in private capital participation. This is GuarantCo’s third transaction in the country, having previously supported two 100 percent guaranteed transactions in 2018 (VND 660 billion/USD 29 million) and 2019 (VND 1,150 billion/USD 50 million) in the affordable housing and road transportation space respectively.

This pathfinding transaction seeks to be an example that will help build market confidence in the potential of local currency green bonds as a means of raising financing for sustainable infrastructure development in Vietnam. This transaction follows the Vietnam Green Capital Market Event organised by GuarantCo and sponsored by PIDG Technical Assistance in August 2021. The event provided attendees with an understanding of the importance of green and climate financing for Vietnam.

The collaboration between EVNFinance and GuarantCo was earlier announced by the Prime Minister of the United Kingdom during COP26 in Glasgow in November 2021 as part of the UK Clean and Green Initiative and is of considerable political importance.

Layth Al-Falaki, CEO of GuarantCo, said:

“We are delighted to close our third transaction in Vietnam and collaborate with EVNFinance to support its sustainability agenda through a future focus on renewable energy projects. This first local currency certified green bond in Vietnam will further climate mitigation and adaptation efforts in line with PIDG and GuarantCo’s aims. We hope that this transaction will set a precedent for future initiatives which could be replicated in Vietnam and accelerate the growth of green bonds in order for GuarantCo to make a significant impact towards positive climate action and support the Sustainable Development Goals through the long-term, local currency credit solutions that we provide.”

Philippe Valahu, CEO of PIDG, said:

“As a Group we accompanied Vietnam’s effort to develop renewable energy, from one of the first hydro IPP to the development in 2018, of one of the very first utility-scale solar IPP farm in Ninh Thuan; PIDG development arm InfraCo Asia brought the 168MW plant to financial close and operation before exiting to investors attracted to Vietnam for the first time. Four years later the market is ready for the first verified green bond and we are proud of the role of PIDG TA and PIDG company GuarantCo in making this happen.”

Nguyen Hoang Hai, CEO of EVNFinance, said:

“Green bonds are an effective capital mobilization channel for investors who are interested in sustainable development and aim to attract capital for green and sustainable growth in the future. EVNFinance, therefore, issued its very first green bond to create opportunities for local institutional investors and promote investment in renewable energy sector in Vietnam. Being guaranteed by GuarantCo and supported by VCBS and GGGI, EVNFinance’s green bond issuance is expected to contribute to Vietnam’s commitment to its transition to a low carbon economy and the company’s strategy on green financing.”

Le Manh Hung, CEO of VCBS, said:

“We are very pleased to have our contribution to the success of this transaction. Not only does it promise a future for new financial products in our market, but it also promotes the development of green energy, demonstrating Vietnam’s actions in addressing global concerns. We see the transaction as a big milestone to mark our Company’s 20th anniversary. We hope that VCBS will have further opportunities to collaborate with both local and foreign partners to bring new internationally standardized financial products, particularly those relating to green finance, to Vietnam.”

Sang Hui Lee, Chief Executive Officer, Manulife Vietnam, said:

“As one of the anchor investors on this transaction, we have been leveraging our strong relationship with GuarantCo to collaborate closely with them on structuring the deal in support of the long-term sustainability financing in Vietnam. This is the first partial guaranteed transaction and local currency green bond for us in Vietnam. As one of the leading Iife insurance and investment management companies in the market, Manulife Vietnam takes a long-term approach toward both the commitment to our clients and our investments in the country.  We will continue to support Vietnam in its efforts to achieving a more sustainable future.”

Wayne Besant, CEO of AIA Vietnam, said:

“We are delighted to partner with GuarantCo in all three bond issuances in Vietnam, from fully guaranteed bond to this partially guaranteed first verified green bond. AIA aims to deliver long-term value by allocating capital to companies that commit to sustainable outcomes. We completed the divestment of directly managed, listed equity and fixed income exposures to coal mining and coal-fired power businesses in 2021 to facilitate the transition to a low-carbon economy. What is good for Vietnam, is good for AIA Vietnam.”

 Dr. Jason Lee, Deputy Director and Head of Emerging Economies Asia, Vietnam Country Representative of Global Green Growth Institute, said:

“The issuance of Vietnam’s first private sector Green Bonds by EVNF is a landmark in the realm of green financing in Vietnam. It demonstrates the transforming investment appetite and maturity of Vietnam’s sustainable financial market. GGGI is proud to bring its green bond technical expertise and advise EVNF in this pioneering transaction. This success will catalyse the market for green bonds in Vietnam and support the Government of Vietnam in achieving its net-zero carbon emission targets.”


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. GuarantCo’s activities are managed by GuarantCo Management Company which is part of Cardano Development

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 opportunity, accountability, safety, integrity and impact. Since 2002, PIDG has supported 190 infrastructure projects to financial close which provided an estimated 220 million people with access to new or improved infrastructre. PIDG is funded by the governments of the United Kingdom, the Netherlands, Switzerland, Australia, Sweden, Germany and the IFC

About EVN Finance

EVNFinance is a general finance company in Vietnam established in 2008. Over 14 years of operation, the Company has continuously grown in both quantity and quality with its prestige and position increasingly affirmed in the domestic and foreign financial markets. Along with digital transformation and technology application in business activities, EVNFinance has focused on expanding its network, especially institutional customers, and international funds, with success in capital mobilization from international funds. Acknowledged that climate change is a significant risk and a major challenge for the global economy and society, EVNFinance determines to strategically focus on and promote investment in the energy sector, especially renewable energy projects. It is expected that EVNFinance will continue to seek fundings from protential international funds as well as promote its green bond channel to finance green bond projects.

About VCBS

Established in 2002, VCBS has been one of the leading securities companies in Vietnam for 20 years. VCBS acts as the financial arm that is 100% owned by Joint Stock Commercial Bank for Foreign Trade of Vietnam, commonly known as Vietcombank, which is always among the top banks of Vietnam in terms of size and performance. VCBS is licensed to provide all securities-related products and services under the Vietnamese laws to both organization and individual clients. With a nationwide network and experienced experts, VCBS has been trusted and chosen by various onshore and offshore clients including state-owned companies, banks, insurance companies, securities companies, funds, etc.

About Manulife

Manulife Financial Corporation is a leading international financial services provider that helps people make their decisions easier and lives better. With our global headquarters in Toronto, Canada, we provide financial advice and insurance, operating as Manulife across Canada, Asia, and Europe, and primarily as John Hancock in the United States. Through Manulife Investment Management, the global brand for our global wealth and asset management segment, we serve individuals, institutions, and retirement plan members worldwide. At the end of 2021, we had more than 38,000 employees, over 119,000 agents, and thousands of distribution partners, serving over 33 million customers. Our principal operations are in Asia and Canada, and the United States, where we have served customers for more than 160 years. We trade as ‘MFC’ on the Toronto, New York, and the Philippine stock exchanges and under ‘945’ in Hong Kong. In the previous 12 months we made CAD$32.7 billion in payments to our customers. Not all offerings are available in all jurisdictions. For additional information, please visit

About AIA

AIA Vietnam is a member of AIA Group – the world’s largest listed Asian-based life insurance group. Established in 2000, in the past 22 years, AIA Vietnam has built a sustainable foundation in the Vietnamese market with total assets of more than 39 trillion VND and more than 200 offices in over 50 provinces and cities across the country until the end of 2021. AIA Vietnam is also honoured to accompany and protect the financial safety of more than 1.5 million insured customers. Up to this point, AIA Vietnam has paid for more than 900 thousand cases of insurance customers with a total amount of more than 8,800 billion VND.

About the Global Green Growth Institute (GGGI)

GGGI was established as an international intergovernmental organization in 2012 at the Rio+20 United Nations Conference on Sustainable Development. Its vision is “a low-carbon, resilient world of strong, inclusive, and sustainable growth” and its mission “to support Members in the transformation of their economies into a green growth economic model”. GGGI does this through technical assistance to: reduce greenhouse gas emissions in line with the Paris Agreement; create green jobs; increase access to sustainable services (such as clean affordable energy, sustainable waste management); improve air quality; sustain natural capital for adequate supply of ecosystem services; and enhance adaptation to climate change.