HDBank has made history by securing the largest international syndicated social loan ever raised by a Vietnamese organization. The $721 million facility, signed on July 30, was arranged with the Asian Development Bank (ADB), Standard Chartered, and other international financial institutions. This landmark transaction highlights strong global investor confidence in both HDBank and Vietnam's long-term economic prospects.
The proceeds from this social loan will be used to expand access to finance for micro, small, and medium-sized enterprises (MSMEs), with a particular focus on women-owned businesses. This initiative supports financial inclusion and sustainable development in Vietnam, aligning with the country's goals of fostering inclusive economic growth.
The facility is structured in line 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 $721 million—around 60% above the original target.
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."
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 women-led businesses. This move is expected to have a significant impact on the Vietnamese economy by empowering small enterprises and promoting gender equality in business.
Earlier, HDBank had secured $270 million in green financing and $380 million in sustainable finance from international development finance institutions, including IFC, ADB, Proparco, DEG, LeapFrog, FMO, BII, JICA, FinDev, and SMBC. These initiatives underscore HDBank's commitment to sustainable finance and its role in supporting Vietnam's transition to a greener and more inclusive economy.
The success of this social loan not only sets a precedent for other Vietnamese financial institutions but also signals the growing attractiveness of Vietnam's sustainable finance market to global investors. As HDBank continues to lead in this space, the implications for the country's financial sector and its broader economic development are profound.
