At a glance
- Company
- HCM City Development Joint Stock Commercial Bank (HDBank)
- Ticker
- HoSE: HDB
- Announcement
- Financing
- Location
- Ho Chi Minh City, Vietnam
Key figures
- Syndicated social loan
- US$721 million
- Commitments above original target
- around 60 per cent
- Earlier green financing
- US$270 million
- Earlier sustainable finance
- US$380 million
People
- Nguyễn Thị Phương ThảoPermanent Vice Chairwoman of HDBank's Board of Directors
- Tran Hoai NamHDBank's Permanent Deputy CEO
Products and programs
Dr Nguyễn Thị Phương Thảo, Permanent Vice Chairwoman of HDBank's Board of Directors, speaks at the signing ceremony, noting that the US$721 million syndicated social loan opens up new resources to support sustainable development and financial inclusion in Việt Nam. — Photo courtesy of HDBank. The transaction highlights strong confidence among global investors 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, particularly women-owned businesses, supporting financial inclusion and sustainable development in Vietnam.
The facility was 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 US$721 million, around 60 per cent above the original target.
CEO of Standard Chartered Vietnam said the facility is the largest syndicated social loan ever raised by a Vietnamese organisation.
"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," the CEO said.
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 recognised 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, said the proceeds would strengthen the bank's medium- and long-term funding base while expanding lending to SMEs, particularly women-led businesses.
Earlier, HDBank 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.
Hashtag: #HDBank
The issuer is solely responsible for the content of this announcement.
Questions around this news
What does HDBank plan to do with the loan proceeds?
The proceeds are intended to widen borrowing opportunities for micro, small and medium-sized firms, with special attention to businesses owned by women. The bank also says the facility will reinforce its medium- and longer-term funding position. Its stated purpose connects access to finance with broader social development goals.
How did the final commitments compare with the original target?
The transaction drew commitments totaling US$721 million, which the release says was around 60 per cent above the initial target. It also describes the financing as the largest international syndicated social loan raised by a Vietnamese organization. The release says international financial institutions participated in the transaction.
What is a syndicated loan?
A syndicated loan is a financing arrangement provided by a group of lenders instead of a single institution. A coordinating bank may organize the process and communications, while each lender supplies an agreed portion. This structure gives borrowers a way to obtain financing from multiple institutions through a coordinated transaction.
What does it mean for a loan to follow social-loan principles?
Social-loan standards guide financing intended to support defined social benefits, such as improved access to essential services or economic opportunity. They commonly address how funds are allocated, how eligible projects are assessed, and how borrowers report the use of proceeds and outcomes to lenders and other stakeholders.
