On December 9, 2021, within the framework of the Vietnam Industrial Energy Saving Promotion Project (VSUEE), funded by the Green Climate Fund (GCF) through the World Bank (WB), the WB and Saigon – Hanoi Bank (SHB) signed a GCF Guarantee Agreement with a total value of US$75 million.

The project to promote energy saving in Vietnamese industries has a scale of US$86.3 million, of which: US$11.3 million is for the management and operation of the Risk Sharing Fund (RSF) and technical support, capacity building for state management agencies, commercial banks participating in the project, industrial enterprises and energy service companies; and US$75 million is for guaranteeing loans for energy saving investments. The project will contribute to supporting the Government in achieving national goals on energy saving, ensuring energy security, reducing greenhouse gas emissions, and responding to climate change…

SHB participates in the project as the issuing bank guaranteeing loans for energy-saving investment projects in Vietnamese industries, facilitating access for energy-saving investment projects to the $75 million Risk Sharing Fund financed by GCF and WB.

The risk-sharing model of the RSF Fund managed by SHB is a very new model in the world and the first of its kind to be implemented in Vietnam. This will be a promising solution for the future of energy efficiency projects in particular and energy security issues in general in Vietnam, helping businesses have more opportunities to receive funding from commercial banks to boldly research and invest in technological innovation, improving energy efficiency in the production process.

WB and SHB signed a guarantee contract for the Green Climate Fund within the framework of the Project to Promote Energy Saving in Vietnamese Industries.

Speaking at the signing ceremony, Ms. Carolyn Turk, World Bank Country Director for Vietnam, stated that promoting energy efficiency is a superior and cost-effective solution to achieve multiple goals simultaneously: ensuring energy security, combating pollution and reducing greenhouse gas emissions, while enhancing the competitiveness of businesses. Given the limited public financing for energy, the risk-sharing fund is an innovative financial tool to mobilize private sector financing for investments aimed at increasing the adoption of energy-saving solutions in industry.

The project aims to contribute to ensuring energy security, combating pollution and reducing greenhouse gas emissions, while simultaneously enhancing the competitiveness of businesses.

Attending the ceremony, Ms. Ngo Thu Ha, Deputy General Director of SHB, shared: “We are committed to dedicating and preparing the best conditions to effectively implement the project; we are committed to complying with relevant regulations during the project implementation, contributing to the successful implementation of the project by the managing agency. In the future, SHB believes and hopes that the World Bank and the Government of Vietnam will have more effective activities, programs, and projects to promote the energy saving program in particular and the green energy industry of Vietnam in general to develop strongly and sustainably.”

SHB has been and will continue to strive to maintain its top position among private commercial banks in green credit. As of the end of 2020, SHB was one of the private commercial banks with the largest outstanding loans for green projects in the entire banking system. The bank has always been proactive in accessing green capital sources from international financial institutions (WB, ADB, KfW, JICA…), considering issuing green bonds, etc., to finance infrastructure construction projects in Vietnam, especially green energy projects. With this advantage, SHB has brought many outstanding benefits to investors in green projects such as preferential loan terms and low interest rates. SHB also focuses on supporting customers to raise awareness of green economic activities, especially compliance with environmental impact assessment requirements for projects applying for loans. For foreign-funded projects, the Bank participates in providing technical safety consulting, training on requirements, and compliance with the donor’s E&S standards.

With many practical solutions, SHB has been honored with numerous awards from prestigious domestic and international organizations: “Outstanding Bank in Green Credit 2020” within the framework of the prestigious Outstanding Vietnamese Bank Awards; “Best COVID-19 Pandemic Management Initiative Bank 2021” – wholesale banking category; “Socially Responsible Bank – Green Bank 2021” award…