HDBank to complete issuance of $100 million in international green bonds in 2025
HDBank officially closed its $100 million green bond program after successfully raising $50 million from FMO and BII for climate projects.
Ho Chi Minh City Development Commercial Bank (HDBank - ticker: HDB) has just completed its second international green bond issuance, successfully raising US$50 million from leading global development finance institutions. This result officially concludes the bank's US$100 million green bond program for 2025, strengthening its pioneering position in the sustainable finance sector.
Details of the fundraising round from international financial institutions.
The second issuance was conducted through a private placement with a 3-year maturity. The Netherlands Enterprise Development Bank (FMO) invested $30 million and the UK International Investment Organisation (BII) contributed $20 million. These are non-convertible, unsecured bonds without warrants.
Previously, the International Finance Corporation (IFC) participated in the first issuance worth $50 million. Completing the entire $100 million program not only helps HDBank diversify its medium and long-term funding sources but also affirms its ability to access stringent international green capital flows from the global market.
Orientation towards green project financing and emission reduction targets.
The funds raised will be disbursed by HDBank to environmentally friendly projects, including solar energy, electric vehicles, green buildings, and energy-saving solutions. These projects must undergo a rigorous screening process, meeting the bank's Sustainable Finance Framework and its Environmental and Social Risk Management (ESG) criteria.
These projects are expected to help reduce approximately 102,000 tons of CO₂ over 10 years. This is a concrete step to support Vietnam in achieving its Net Zero commitment by 2050, while simultaneously improving the quality of life and promoting sustainable economic growth.
Commitment from global strategic partners
Mr. Nguyen Huu Dang, General Director of HDBank, emphasized that sustainable development is a cornerstone of the bank's strategy. The international green bond program marks a significant step forward in the journey to deliver long-term value to customers and the community. Mr. Weichuan Xu, representing IFC, assessed this as an important catalyst for attracting more international investors to Vietnam's climate finance market.
Meanwhile, Mr. Juan Jose Dada Ortiz from FMO and Mr. Srini Nagarajan from BII both affirmed that Vietnam is a priority market in their green energy transition investment strategy. The coordinated participation of IFC, FMO, and BII demonstrates the growing potential of the domestic sustainable financial ecosystem, helping to strengthen the reputation of Vietnamese banks internationally.