On July 30, HDBank signed a landmark US$721 million international syndicated social loan with the Asian Development Bank, Standard Chartered, and other international financial institutions. This transaction is the largest international syndicated social loan ever raised by a Vietnamese organization, according to a press release. The deal 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. The facility was structured with ADB and Standard Chartered serving 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 significant interest from international investors, with commitments reaching US$721 million, approximately 60% above the original target. 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."
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.
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 women-led businesses. This deal follows HDBank's earlier successes in sustainable finance, having 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.
The significance of this transaction extends beyond its size. It demonstrates the growing appetite among global investors for social and sustainable financial instruments in Vietnam, a market that is increasingly recognized for its economic dynamism and commitment to sustainable development. By channeling funds to underserved segments such as women-owned MSMEs, this loan is poised to have a tangible impact on financial inclusion and gender equality in the country.
Moreover, the deal reflects a broader trend in the region where financial institutions are leveraging international capital markets to address social and environmental challenges. For HDBank, this milestone not only enhances its reputation as a leader in sustainable finance but also positions it to play a pivotal role in Vietnam's transition towards a more inclusive and sustainable economy.
