Second-Party Opinion Download

Sustainalytics is of the opinion that the VPBank Green Loan Framework aligns with the four core components of the Green Loan Principles 2020. This assessment is based on the following:

USE OF PROCEEDS

The eligible categories for the use of proceeds – (i) Renewable Energy, (ii) Energy Efficiency, (iii) Clean Transportation, (iv) Eco-friendly and/or Circular Economy Adapted Products, Production Processes and Technology, (v) Sustainable Water and Wastewater Management, (vi) Green Buildings, (vii) Agriculture and Forestry, (viii) Pollution Prevention and Control – are aligned with those recognized by the Green Loan Principles 2020. Sustainalytics considers that the eligible categories will lead to positive environmental impacts in Vietnam and advance the UN Sustainable Development Goals, specifically SDG 6, 7, 11, 12, 14 & 15.

PROJECT EVALUATION/SELECTION

VPBank’s process for project evaluation and selection will be overseen by the Credit Committee (the “Committee”). Relationship managers within business segments will be responsible for identifying potentially eligible projects and propose them for selection for the eligible project portfolio. The Committee will be responsible for ensuring that proposed projects are aligned with the Framework’s eligibility criteria, as well as tracking and monitoring the eligibility of projects throughout the lifetime of the loan. This process is aligned with market practice.

MANAGEMENT OF PROCEEDS

VPBank’s process for management of use of proceeds is handled by the Balance Sheet Management Department (“BSM”), under the bank’s Finance Division. Proceeds will be allocated on a portfolio basis and tracked by the BSM team. Pending full allocation, unallocated proceeds may be invested in in cash or high-quality marketable instruments in line with the bank’s internal liquidity management strategy. This is in line with market practice.

REPORTING

VPBank intends to report allocation metrics exclusively to lenders on an annual basis until full allocation. Allocation reporting will include metrics such as the aggregate amount of allocation, proportion of net proceeds allocated to new investments, remaining balance of unallocated proceeds, and a list of eligible green assets by project type. Additionally, VPBank is committed to reporting on relevant impact metrics. This is in line with market practice.