The funds from this innovative trade loan are towards refinancing the importation of steel scrap, recognized as a component in Vietnam’s burgeoning circular economy. The utilization of scrap is crucial in curtailing steel industry emissions and diminishing resource consumption. According to a research on energy, each ton of scrap used for steel production prevents the release of 1.6 tons of CO2 emissions, saving 350 kg of standard coal and 1.7 tons of new water.

The transaction was executed under MUFG Bank’s extended Trade Facility to BIDV, of which the Green tranche was recently signed. The Green Trade Facility is backed by BIDV’s Sustainable Loan Framework, outlining qualifying activities to guide the development and financing of green loans under international practice.  

Mr. Frederic Cabay, Managing Director, Global Co-head of Financial Institutions, MUFG, expressed:

As a leading financial institution, we recognize the profound impact that our investment decisions have on the economy and the environment. We are committed to invest in initiatives that not only drives the local economy, but also accelerate the transition towards a low-carbon future.

Ms. Pham Thi Ngoc Anh, Executive Vice President, Head of Financial Institutions, BIDV, shared:

Being a leading commercial bank in Vietnam, BIDV consistently recognizes its pioneering role and commitment to partnering with the Government in realizing emission reduction goals.  Identifying the promotion of green financing as one of our top priorities, BIDV focuses on green finance cooperation with leading financial institutions like MUFG to deploy preferential green funding in Vietnam.

 BIDV and MUFG will continue to closely coordinate to deploy additional Green Trade Loan transactions in coming time, contributing to promoting positive impacts on the ecological environment, reducing GHG emission and mitigating climate change in Vietnam.