Financing climate projects in Vietnam with MSB

MSB was founded in 1991 and is based in Hanoi. It is the 13th largest private bank in Vietnam. Since 2020, MSB has been developing a portfolio of Climate loans for SMEs and large companies to allow them to finance their renewable energy and energy efficiency projects. 

In 2020, Vietnam shifted towards more ambitious environmental policies and a convergence with the relevant international standards. MSB followed on from this by setting itself the objective of becoming a national reference for green projects. 

Through this senior loan, Proparco is supporting MSB in its efforts, through a series of intermediated projects mainly dedicated to financing the green projects it has been implementing in Vietnam since 2020. 

Proparco is also helping MSB to implement the environmental and social policy it initiated in 2021, through technical assistance via international organizations for the implementation of a comprehensive environmental and social system, in order to align with the highest international standards. Proparco will thereby be providing technical support financed by a technical assistance facility dedicated to financial institutions.

The main expected impacts of the project are as follows:

• 11 jobs created and 2,371 jobs maintained at MSB and in the companies that will be financed over the next 5 years
• Financing for projects with co-benefits for climate mitigation (renewable energy and energy efficiency). 100% of Proparco’s loan will be classified “climate” 
• With 63% of women employees and 53% of women in the bank’s management team, 30% of this financing qualifies for the 2X Challenge initiative to reduce gender inequalities. 

The project will contribute to SDG 5 (Gender equality), SDG 7 (Affordable and clean energy), SDG 8 (Decent work and economic growth) and SDG 13 (Climate action).