HDBank has signed a US$721 million international syndicated social loan, marking the largest such facility ever raised by a Vietnamese organization. The agreement, signed on July 30, involves the Asian Development Bank (ADB), Standard Chartered, and other international financial institutions. This transaction highlights strong confidence among global investors in HDBank and Vietnam's long-term economic prospects.
The proceeds from the loan will be used to expand access to finance for micro, small, and medium-sized enterprises (MSMEs), particularly women-owned businesses. This initiative supports financial inclusion and sustainable development in Vietnam, aligning with the Social Loan Principles and HDBank's Sustainable Finance Framework. ADB and Standard Chartered served as joint coordinators, while ANZ, Cathay United Bank, Commerzbank, Maybank Securities, MUFG Bank, and the State Bank of India acted as mandated lead arrangers and bookrunners.
The transaction attracted strong interest from international investors, with commitments reaching US$721 million, approximately 60% above the original target. The CEO of Standard Chartered Vietnam noted, "This achievement reflects investors' confidence in HDBank and its leadership team, and demonstrates optimism about Vietnam's long-term growth prospects and the growing appeal of the country's sustainable finance market among global investors."
Dr. Nguyen Thi Phuong Thao, Permanent Vice Chairwoman of HDBank's Board of Directors, described the loan as a new milestone for the bank. "It is our first financing facility dedicated exclusively to social initiatives, including programmes supporting women," she said, adding that the transaction recognized HDBank's long-standing commitment to community development through programmes supporting businesses, healthcare, education, culture, sports, women, and children.
Tran Hoai Nam, HDBank's Permanent Deputy CEO, stated that the proceeds would strengthen the bank's medium- and long-term funding base while expanding lending to SMEs, particularly women-led businesses. Earlier, HDBank had secured US$270 million in green financing and US$380 million in sustainable finance from international development finance institutions, including IFC, ADB, Proparco, DEG, LeapFrog, FMO, BII, JICA, FinDev, and SMBC.
This landmark deal not only provides HDBank with substantial capital to support underserved segments but also signals the growing attractiveness of Vietnam's sustainable finance market to global investors. By prioritizing social loans, HDBank is setting a precedent for other financial institutions in the region, potentially catalyzing further investments in social and environmental initiatives. The successful syndication, oversubscribed by 60%, demonstrates robust demand for socially responsible investment opportunities in Vietnam, aligning with broader global trends toward sustainable finance.
