4 October, 2019
Green project financing has become a global trend in the banking and finance industry. In Vietnam, while traditional financing channels via banks increasingly offer preferential credits to green projects in the country, new legislation was recently adopted this year for enterprises to issue green bonds to mobilise capital for environmental protection projects. This opens yet another channel for financing the green sector in Vietnam.
Significant progress of the traditional financing channel via banks
Banks have increasingly shown interest in providing credits, mainly for medium and long term financing with preferential interest rates for green projects. Some of this impetus also reflects changing internal regulations of certain banks on environmental and social risk management, and the conduct of credit risk assessment in lending activities.
Banks are progressively looking towards actively joining the green circle and achieving practical results towards the national goals for sustainable growth and reduction of carbon emissions.
The full article can be found from Zicolaw's site here.
For more information, please contact:
Kevin Hawkins, Co-Executive Partner at ZICO Law Vietnam,
kevin.hawkins@zicolaw.com
