On July 30, the HCM City Development Joint Stock Commercial Bank (HDBank, HoSE: HDB) signed a US$721 million international syndicated social loan with the Asian Development Bank (ADB), Standard Chartered, and other international financial institutions. This transaction marks the largest international syndicated social loan ever raised by a Vietnamese organization, highlighting strong confidence among global investors in HDBank and Vietnam's long-term economic prospects.
The proceeds from this facility will be used to expand access to finance for micro, small, and medium-sized enterprises (MSMEs), particularly women-owned businesses, 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, ensuring that the funds are deployed for socially beneficial purposes.
ADB and Standard Chartered served as joint coordinators for the transaction, 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, approximately 60% above the original target.
The CEO of Standard Chartered Vietnam commented on the significance of the facility, stating that it is the largest syndicated social loan ever raised by a Vietnamese organisation. He added, "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."
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 women-led businesses. This aligns with HDBank's strategic focus on sustainable finance and financial inclusion.
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. The new social loan further cements HDBank's position as a leader in sustainable banking in Vietnam.
This record transaction underscores the growing importance of sustainable finance in Vietnam and the confidence of international investors in the country's economic trajectory. By directing capital to underserved segments, the loan is expected to have a significant impact on empowering women entrepreneurs and fostering inclusive growth.
