Baker McKenzie acted for Vietnam’s leading tourism and property developer, BIM Land Joint Stock Company (“BIM Land”) and Thanh Xuan Joint Stock Company (“Thanh Xuan”) in connection with the issuance of Vietnam’s first local-currency sustainability bonds. The bonds issue will enable both companies to expand their businesses while creating jobs, boosting competitiveness, and supporting the country’s low-carbon growth model. Both BIM Land and Thanh Xuan are subsidiaries of BIM Group, a multi-sector corporation based in Vietnam.
On 19 September, the International Finance Corporation (“IFC”) announced that it would invest up to VND 3.49 trillion (around USD 150 million) in the bonds. The proceeds will be used to develop the Thanh Xuan valley project in northern Vinh Phuc province, which includes an eco-friendly and unique residential community alongside a hotel complex under the InterContinental brand, as well as other relevant services and infrastructure. The IFC funding will also help the developers implement water and energy savings solutions in two BIM Land hotels — the InterContinental and the Regent — on Phu Quoc Island.
The Baker McKenzie team was led by Partner Oanh Nguyen and Special Counsel Thai Ninh (Daniel) Ngo, with support from Associate Nguyen Phuoc Anh Tram, Trainee Solicitor Van Thieu (Toby) Dong, as well as Law Clerk Dang Hoang Nguyen.
Commenting on the deal, Oanh said: “We are very pleased to be involved in Vietnam’s first local-currency sustainability bonds issue, leveraging our deep capital market experience. This transaction not only signifies BIM Group’s commitment to sustainability, but also signals the viability of innovative green financial instruments in Vietnam’s financial ecosystem.”
Oanh continued, “As more companies align climate risk with their business strategies, we are expecting to see an increase in interest from corporates in sustainability-linked bonds. We look forward to assisting businesses with their legal needs as they pursue their sustainability mission in support of Vietnam’s transition into a low carbon economy.”
