Continuing its pioneering role in sustainable finance in Vietnam, the Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) has recently launched the Sustainability-Linked Loan (SLL) product. This innovative product is designed to promote sustainable production and business activities, while supporting businesses in their transition towards carbon emission reduction.

The “Sustainability-Linked Loan” enables businesses to access funding at preferential interest rates and enjoy additional other benefits upon achieving their committed sustainable development goals. These goals may include reducing environmental impact, optimizing energy resources, and managing supply chains responsibly. The Sustainable Performance Targets (SPTs) tied to the SLL are diverse and flexibly designed to meet the specific needs of each corporate customer.

This product aligns with BIDV’s Sustainable Loan Framework and adheres to the Sustainability-Linked Loan Principles (SLLP), the international standards set forth by the Loan Market Association (LMA), the Loan Syndications and Trading Association (LSTA), and the Asia Pacific Loan Market Association (APLMA).   

Sustainability-Linked Loan targets corporate customers in high-emissions sectors with clear emission reduction roadmap, including Energy, Industrial manufacturing, Transport, Real Estate, and Agricultural Sector. Businesses in other sectors with plans for emission reduction and commitments to sustainable development goals can also apply for this loan.

The Sustainability-Linked Loan is part of BIDV's broader strategy to diversify its portfolio of sustainable financial products, alongside its established products such as Green Credit, Green Deposits, Green Bonds, and Sustainable Bonds. Following the pilot phase, BIDV will gather feedback, evaluate performance, and make necessary adjustments to meet the demand of businesses.

 BIDV commit to continue supporting businesses in their green transition and ESG practices, aligning with international standards, contributing to carbon emission reduction and advancing Vietnam’s Net Zero target by 2050.