BINH THUAN PLASTIC GROUP (BPG) OFFICIALLY ISSUES GREEN BONDS TO DRIVE SUSTAINABLE INDUSTRIAL PROJECTS AND CIRCULAR ECONOMY MODELS IN VIETNAM.
1. Compliance with ICMA Green Bond Principles
From the initial structuring phase, BPG committed to full compliance with the Green Bond Principles (GBP) issued by the International Capital Market Association (ICMA). This set of principles establishes requirements throughout the bond’s lifecycle, including:
- Green project classification criteria.
- Cash flow management mechanisms.
- Information disclosure procedures.
- Periodic reporting obligations on the use of proceeds.
Adherence to ICMA GBP enables BPG to maintain high transparency, meet international standards, and enhance attractiveness to investors focused on green finance and ESG standards.
2. Development of the Green Bond Framework with GGGI Advisory
BPG’s Green Bond Framework was developed with professional advisory from the Global Green Growth Institute (GGGI). The framework clearly defines:
- Eligible green project categories.
- Methods for managing and allocating mobilized capital.
- Monitoring and periodic reporting mechanisms.
- Control and risk management systems related to green bonds.
This framework serves as the foundation to ensure capital is used for its intended purpose and stays closely aligned with BPG’s sustainable growth strategy.
3. Credit Guarantee by GuarantCo Ltd
BPG’s green bonds are guaranteed by GuarantCo Ltd, an organization supported by the governments of the United Kingdom, Switzerland, Australia, Sweden, and the Netherlands. GuarantCo specializes in providing credit guarantees for infrastructure and industrial projects in emerging markets.
GuarantCo’s participation provides:
- A superior layer of protection, enhancing credit safety for the bonds.
- Strong investor confidence, particularly in the green finance sector.
- Access to international capital sources with preferential conditions.
This guarantee is a key factor in consolidating prestige and increasing the attractiveness of BPG’s green bonds in the financial market.
4. Independent Assessment and AAA Credit Rating by FiinRatings
FiinRatings, a credit rating agency licensed by the Ministry of Finance, performed the Second Party Opinion (SPO) on the Green Bond Framework and provided credit ratings for both the Issuer and the Bonds. The SPO report confirmed that BPG’s framework aligns with ICMA GBP and evaluated the suitability of intended projects across categories such as use of proceeds, project evaluation and selection, capital management, and reporting.
Notably, BPG’s bonds received a AAA credit rating—the highest possible level—reflecting:
- A transparent credit profile and stable cash flow.
- A stringently established risk management system.
- High reliability for both domestic and international investors.
The AAA rating, combined with FiinRatings’ independent assessment, strengthens the bond’s reputation and competitiveness in the market.
5. Capital Allocation for Green Industrial Projects
Funds raised through Green Bonds will be allocated to projects with positive environmental impacts, including:
- Hung Yen Factory Complex: Utilizing energy-saving and environmentally friendly production technologies.
- Recycled Pallet Model and Pallet Leasing: Extending material lifecycles and reducing new resource consumption.
- Emission Reduction Projects: Optimizing resource usage and developing circular production models.
6. Bond Package Information (Phase 1)
- Total Value: 260 Billion VND (~10 Million USD).
- 182 Billion VND: Construction of the Hung Yen Factory Complex – Phase 1.
- 78 Billion VND: Investment in recycled pallets for the leasing model deployed through BPG Retail.
- Tenor: 7 years.
- Interest Rate: 5.85%.
7. Aspirations to Accompany Vietnam’s Green Transition
As Vietnam promotes green growth and global economic integration, BPG chooses to lead with strategic steps that meet international standards. The issuance of Green Bonds not only provides resources for the circular economy but also demonstrates BPG’s determination to advance Vietnam’s materials industry on its journey toward sustainable development.