GuarantCo 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.

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.

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.