Lender HDBank secures Vietnam’s largest-ever int’l syndicated social loan at $721mn

HDBank signed the loan agreement in Ho Chi Minh City with the Asian Development Bank (ADB), Standard Chartered, and other international financial institutions.

The deal marked a major milestone for the country's capital market and underscored strong confidence among global financial institutions in HDBank and the growth prospects of Vietnam’s economy.

The loan was structured in line with the social loan principles and HDBank's sustainable finance framework, with ADB and Standard Chartered serving as joint coordinators.

Six other international financial institutions — Australia and New Zealand Banking Group Limited, Cathay United Bank, Commerzbank, Maybank Securities, MUFG Bank, and State Bank of India — also participated in arranging and bookbuilding for the transaction.

According to Nguyen Thuy Hanh, CEO of Standard Chartered Vietnam, the transaction was the largest syndicated social loan ever raised by a Vietnamese organization and received commitments about 60 percent above its initial target.

Nguyen Thi Phuong Thao, strategic investor and permanent vice-chairwoman of the board of directors of HDBank, said the loan marked a new milestone for HDBank.

It was HDBank's first loan dedicated exclusively to social initiatives, including programs supporting women, she said, adding that the deal reflects the bank's long-standing commitment to supporting communities through programs in healthcare, education, culture, sports, and initiatives for women and children.

Tran Hoai Nam, permanent deputy CEO of HDBank, said the funding would strengthen the bank's medium- and long-term capital base and expand credit access for micro, small and medium-sized enterprises, particularly women-owned businesses, thereby promoting financial inclusion and sustainable growth.

Before this transaction, HDBank had successfully raised $270 million in green financing and $380 million in sustainable financing from international development finance institutions, including International Finance Corporation, ADB, Proparco, DEG, LeapFrog, Dutch entrepreneurial development bank FMO, British International Investment, the Japan International Cooperation Agency, FinDev Canada, and Sumitomo Mitsui Banking Corporation.

The $721 million syndicated social loan further strengthens HDBank's ability to access international funding under sustainable finance standards while providing additional resources to support businesses and contribute to Vietnam's sustainable development goals.