On July 30, HDBank signed a US$721 million international syndicated social loan, the largest ever for a Vietnamese organization, according to a press release. The loan, coordinated by the Asian Development Bank (ADB) and Standard Chartered, attracted commitments about 60% above the original target, reflecting strong global investor confidence in HDBank and Vietnam's economic prospects.
The proceeds will be used to expand access to finance for micro, small, and medium-sized enterprises (MSMEs), with a focus on women-owned businesses, supporting financial inclusion and sustainable development. The facility is structured in line with the Social Loan Principles and HDBank's Sustainable Finance Framework.
This transaction marks a milestone for HDBank, as it is the bank's first financing facility dedicated exclusively to social initiatives. Dr. Nguyen Thi Phuong Thao, Permanent Vice Chairwoman of HDBank's Board of Directors, stated that the loan recognizes HDBank's long-standing commitment to community development, including programs supporting women and children.
The loan strengthens HDBank's medium- and long-term funding base, enabling the bank to expand lending to SMEs, particularly those led by women. Tran Hoai Nam, HDBank's Permanent Deputy CEO, emphasized that the proceeds will support the bank's strategic goals.
The syndication included major international banks such as ANZ, Cathay United Bank, Commerzbank, Maybank Securities, MUFG Bank, and the State Bank of India as mandated lead arrangers and bookrunners. The strong participation underscores the growing appeal of Vietnam's sustainable finance market among global investors.
This deal follows HDBank's earlier successes in securing US$270 million in green financing and US$380 million in sustainable finance from international development finance institutions like IFC, ADB, and Proparco. The new social loan further positions HDBank as a leader in sustainable banking in Vietnam.
The implications are significant: it not only provides critical funding for MSMEs but also sets a precedent for other Vietnamese banks to tap into international capital markets for social purposes. It signals Vietnam's commitment to sustainable development and financial inclusion, which are key to long-term economic resilience.
