Teaming up with Nam A Bank to reduce greenhouse gas emissions
Climate financing for Vietnamese partner bank
Zurich, 18 December 2018 — The responsAbility-managed climate fund and Nam A Bank are teaming up to launch the bank’s green lending activities in Vietnam. Benefiting from strong policy support for renewable energy and energy efficiency projects, Nam A Bank is highly committed to developing a green lending product portfolio for diverse target groups. With the new credit facility and technical support provided by the Fund, the bank aims to position itself as the country’s leader in this market.
Nam A Bank was established in 1992 as one of the first private commercial banks incorporated in Vietnam. Nam A Bank ranked 25th in terms of total assets and contributed capital at the end of 2017 and, at the end of 2018, managed total assets of USD 3.1 bn. The bank predominantly focuses on corporate clients (63.9%), individuals (15.1%) and SME clients (4.1%).
In an effort to become more sustainable and reduce the country’s dependence on fossil fuel by promoting renewable energy and energy efficient projects, the Vietnamese government in late 2015 issued Vietnam’s Strategy for renewable energy development by 2030. Under this strategy, Vietnam promised to reduce GHG emissions through domestic resources by 8% by 2030, claiming that this contribution could be increased by up to 25% with international support.
In this context, Nam A Bank’s partnership with the responsAbility-managed climate fund was welcomed by the State Bank of Vietnam, as it will enable the bank to become Vietnam’s first private commercial bank to launch green lending products for medium and small clients (SMEs and individuals).
Providing financing as well as support from the Fund’s Technical Assistance Facility, the partnership will allow the bank to build a comprehensive range of green lending products to offer to its clients and further develop environment and social management practices. These products will include energy-efficient home appliances, buildings, transportation, agriculture as well as utility-scale renewable energy projects.
Commenting on the new partnership, Mr. Tran Ngoc Tam, CEO of Nam A Bank, underlined: “Sustainable economic development can only be achieved by promoting environmental-friendly practices and fighting global warming. By teaming up with an experienced partner that has ample experience of helping financial institutions in emerging economies in building up a green lending offering we are thrilled to lead the way within Vietnam’s financial sector by developing a full green lending program.”
Speaking on behalf of responsAbility Investments, Maud Savary-Mornet, Regional Director Asia-Pacific, added: “We are proud to further expand our network in the Mekong region. By partnering with Nam A, we will help design innovative solutions to further increase energy efficiency and reduce CO2 emissions.”
About Nam A Bank (namabank.com.vn) Nam A Bank was established in 1992 as one of the first private commercial banks incorporated in Vietnam and, at the end of 2018, managed total assets of USD 3.1 bn. Nam A Bank ranked 25th in terms of total assets and contributed capital at the end of 2017 among Vietnamese banks. The bank predominantly focuses on corporate clients, individuals and SME clients. Nam A Bank is Vietnam’s first private commercial bank to launch green lending products that can reach medium and small clients (SMEs and individuals).
About responsAbility Investments AG (www.responsability.com) With USD 3 billion of assets under management invested in over 540 companies in 90 countries, responsAbility Investments AG is a leading asset manager in the field of development investments the company supplies private debt and private equity to predominantly unlisted companies with inclusive business models in emerging economies. Founded in 2003, the company is headquartered in Zurich and has local offices in Bangkok, Hong Kong, Lima, Luxembourg, Mumbai, Nairobi, Oslo and Paris.
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