Saigon – Hanoi Commercial Joint Stock Bank (SHB) has announced its inaugural Sustainable Finance Framework, establishing standardised methodologies for evaluating and allocating capital toward green, blue, and social projects across Vietnam.
The framework received an independent Second Party Opinion from S&P Global Ratings, which confirmed that SHB’s selection criteria align with global standards. According to S&P Global Ratings, eligible funding categories address pressingly critical challenges in Vietnam, including carbon emissions, water stress, ocean plastic pollution, and social inequality.
The framework encompasses green finance, social finance, and dedicated blue finance—a specialized category aligned with the International Finance Corporation’s Blue Finance Guidance aimed at protecting marine ecosystems and managing water resources. The broader structure complies with international guidelines issued by the International Capital Market Association (ICMA) as well as the Loan Market Association (LMA), Loan Syndications and Trading Association (LSTA), and Asia Pacific Loan Market Association (APLMA).
SHB’s framework applies across a broad range of financial instruments, including green and social bonds, corporate loans, trade finance, consumer loans, and sustainable deposits. To ensure capital management transparency, the bank has committed to publishing annual allocation and impact reports verified by independent third-party reviews until all funds are fully disbursed.
Alongside the framework’s release, SHB set a corporate target to increase green credit to at least 25 per cent of its total outstanding loan portfolio by 2028. The bank has already provided approximately VND 11,265 billion in debt financing for major domestic renewable energy assets, including the 155 MW Cho Long wind power plant, the 72 MW Hoa Dong 2 wind facility, and the 240 MW Thien Tan solar power cluster.
The announcement comes amidst expanded international capital-raising activity by the lender. SHB recently executed a $340 million syndicated loan facility coordinated by Sumitomo Mitsui Banking Corporation (SMBC), alongside two ESG-linked syndicated loans totalling nearly $600 million supported by 26 international financial institutions.
Bank management stated that standardising its governance and impact reporting protocols under the new framework enables SHB to scale its green portfolio, diversify medium-to-long-term funding sources, and support sustainable economic development across Southeast Asia.
