On July 30, HDBank signed a US$721 million international syndicated social loan, the largest ever raised by a Vietnamese organization, according to a press release. The facility, coordinated by the Asian Development Bank (ADB) and Standard Chartered, attracted commitments approximately 60% above the original target, signaling strong global investor confidence in HDBank and Vietnam's long-term economic prospects.
The proceeds will be used to expand access to finance for micro, small, and medium-sized enterprises (MSMEs), with a particular focus on women-owned businesses, thereby supporting financial inclusion and sustainable development in Vietnam. The loan is structured in line with the Social Loan Principles and HDBank's Sustainable Finance Framework, underscoring the bank's commitment to responsible finance.
The transaction saw participation from a diverse group of international financial institutions, including ANZ, Cathay United Bank, Commerzbank, Maybank Securities, MUFG Bank, and the State Bank of India as mandated lead arrangers and bookrunners. The strong interest from investors worldwide highlights the growing 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 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, noted that the proceeds would strengthen the bank's medium- and long-term funding base while expanding lending to SMEs, particularly those led by women. This aligns with HDBank's strategic focus on sustainable development and financial inclusion.
This landmark deal builds on HDBank's previous successes in sustainable finance, having secured US$270 million in green financing and US$380 million in sustainable finance from international development finance institutions such as IFC, ADB, Proparco, DEG, LeapFrog, FMO, BII, JICA, FinDev, and SMBC. The bank's ability to attract such significant funding underscores its strong reputation and the confidence of global investors in its leadership and growth trajectory.
The CEO of Standard Chartered Vietnam commented, "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."
This record social loan is a testament to Vietnam's emergence as a hub for sustainable finance in the region, and HDBank's role as a pioneer in this space. The funds will not only support the growth of MSMEs but also contribute to broader social and economic development goals, particularly the empowerment of women entrepreneurs.
