IDI SUCCESSFULLY ISSUES FIRST AQUACULTURE GREEN BOND IN ASIA-PACIFIC

On November 26, 2024, at the Sheraton Saigon Grand Opera Hotel, Ho Chi Minh City, the “Ceremony to Announce IDI’s Successful Issuance of the First Aquaculture Green Bond in Asia-Pacific” was held.

Overview of the ceremony

Mr. Le Tuan Anh, CEO of Sao Mai Group, stated: “IDI’s successful issuance of the first aquaculture green bond in Asia paves the way for further advancement with a win-win journey, not only for GuarantCo and IDI but also for many other secondary investors.”

This significant event was jointly organized by the International Development & Investment Corporation (IDI), a member of Sao Mai Group, and GuarantCo Ltd. The ceremony was attended by notable figures such as Mr. Brent Stewat, Deputy Consul General of Australia; Mr. Ben Gruenberg, First Secretary of the United Kingdom Consulate; Mr. Nishant Kumar, Asia-Pacific Executive Director of GuarantCo; and representatives of various domestic and international financial institutions.

The IDIH2432001 bond issuance included 1,000 bonds with a face value of VND 1 billion per bond, amounting to a total issuance value of VND 1 trillion. The bonds have an 8-year term, a fixed interest rate of 5.58% per annum—the lowest recorded rate after the banking sector.

This is Vietnam’s first-ever aquaculture green bond to date and the first of its kind in the Asia-Pacific region. Backed by a payment guarantee from GuarantCo Ltd (operating under Mauritian law), IDI completed the bond issuance on October 31, 2024, with the maturity date set for October 31, 2032.

Mr. Brent Stewat, Deputy Consul General of Australia, remarked: "IDI’s green bond paves the way for greening Vietnam's aquaculture industry."

GuarantCo has become a strategic partner of IDI and it is this partnership that has helped IDI achieve its successes and reach out to domestic and foreign investors.

Mr. Le Tuan Anh, CEO of Sao Mai Group (seated right), signed a Memorandum of Understanding with GuarantCo leaders during the ceremony.

The bond depository is managed by the Vietnam Securities Depository and Clearing Corporation, with the involvement of Vietnam Joint Stock Commercial Bank for Foreign Trade Securities Company (VCBS).

Mr. Le Van Canh, CEO of IDI, stated: "The first aquaculture green bond in the Asia-Pacific region marks a significant milestone in IDI’s 16 years of establishment and development."

IDI’s successful issuance of the first aquaculture green bond in Asia-Pacific is a pioneering step, timely integration, aligning with global trends towards sustainability and environmental preservation. IDI has affirmed the absolute value of the billion-dollar aquaculture industry in the Mekong Delta, emphasizing the need for conservation and enhanced economic benefits from pangasius exports for Vietnam.

IDI has benefited from a low anti-dumping tax rate (POR19) recently announced by the U.S. Department of Commerce (DOC), facilitating easier entry into the U.S. market.

IDI's seafood products have been exported to more than 50 countries and territories worldwide. For many consecutive years, IDI has always been in the top 3 of the largest seafood processing and exporting enterprises in Vietnam.

Delegates receiving flowers of thanks from Sao Mai Group and IDI Company

The proceeds from the green bond issuance will be utilized to accelerate the completion of IDI’s U.S. Seafood Plant. This facility is expected to have a production capacity of 120 tons per day, with an annual frozen fillet output of 20,000 tons. Upon completion, this plant will increase IDI’s total processing capacity to nearly 600 tons of raw materials per day.

The new plant, the third seafood processing facility by IDI, will feature advanced production technology transferred from Europe, meeting the highest technical and food safety standards for the U.S. and European markets. In addition, the modern facility will ensure that it does not affect or impact the environment. IDI will also apply solar energy solutions in the production process, this ensures a clean and safe supply chain, from aquaculture farms to the customers' tables.

IDI is also constructing a high-quality fish breeding center with ambitions to revolutionize pangasius breeding. These two projects represent a combined investment of nearly VND 1 trillion.

As a key subsidiary of Sao Mai Group, IDI’s successful green bond issuance serves as an important step for the group to expand green bonds into other sectors under its management.

After 25 years of establishment, Sao Mai Group has implemented profound strategies across various sectors, including real estate, aquaculture, seafood export, aquafeed production, eco-tourism, construction design, labor export, and renewable energy. In each field, the group has taken solid steps to continuously create new values for the community, contributing to protecting the natural environment in localities.

LAMORI Resort & Spa - a mysterious green valley in the epic land of Lam Kinh

Among them, ecotourism and clean energy are the main spearheads of the Group, aligning with global development trends, highly appreciated by governments, environmental protection organizations, and green financial organizations, and bringing very convincing results to Sao Mai.