In a landmark transaction for Vietnam's banking sector, HDBank has signed a US$721 million international syndicated social loan, the largest ever raised by a Vietnamese organization. The agreement, signed on July 30 with the Asian Development Bank (ADB), Standard Chartered, and other international financial institutions, underscores growing global investor confidence in HDBank and Vietnam's long-term economic prospects.
The proceeds from this facility will be directed toward expanding access to finance for micro, small, and medium-sized enterprises (MSMEs), with a particular focus on women-owned businesses. This aligns with the bank's commitment to financial inclusion and sustainable development, as outlined in its Sustainable Finance Framework and the Social Loan Principles. The transaction attracted strong interest from international investors, with commitments exceeding the original target by approximately 60%.
The facility was jointly coordinated by ADB and Standard Chartered, with ANZ, Cathay United Bank, Commerzbank, Maybank Securities, MUFG Bank, and the State Bank of India serving as mandated lead arrangers and bookrunners. This diverse group of financial institutions reflects the broad appeal of Vietnam's sustainable finance market.
Speaking at the signing ceremony, 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 recognizes HDBank's long-standing commitment to community development through programmes supporting businesses, healthcare, education, culture, sports, women, and children.
The CEO of Standard Chartered Vietnam highlighted the significance of the deal, stating, "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."
Tran Hoai Nam, HDBank's Permanent Deputy CEO, noted that the proceeds will strengthen the bank's medium- and long-term funding base while expanding lending to SMEs, particularly women-led businesses. This move is expected to have a ripple effect on the broader economy, empowering underserved segments and fostering sustainable growth.
This landmark transaction builds on HDBank's track record in sustainable finance. Earlier, the bank 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. These efforts position HDBank as a leader in sustainable banking in Vietnam, setting a precedent for other financial institutions in the region.
The success of this social loan signals a robust appetite for socially responsible investments in Vietnam, contributing to the country's goal of achieving sustainable development. As global investors increasingly prioritize environmental, social, and governance (ESG) criteria, transactions like this are likely to become more common, driving positive change in emerging markets.
