Vietnam’s HDBank successfully issues $100mn green bonds to international investors

The announcement was made at ‘The USD100 Million Green Bond Issuance Disclosure Ceremony’ recently held by HDBank and its green bond investors including FMO, BII, and the International Finance Corporation (IFC) – a member of the World Bank Group – in the presence of the Deputy Consul General of the Netherlands and representatives from the Consulate General of the UK in Ho Chi Minh City.

The green bonds, including $30 million privately issued to FMO and $20 million to BII, totaling $50 million in face value with a 3-year term, are the second tranche of HDBank's $100 million green bond issuance to the international market in 2025, the bank said in a press release on January 7.

It follows the first tranche, also valued at $50 million, subscribed by IFC, which facilitated the participation of FMO and BII in the second tranche.

The bonds are non-convertible, without warrants, and unsecured.

“Sustainable development goals reside at the heart of HDBank’s strategy which is featured by the best value for customers, partners, and the community,” said CEO Nguyen Huu Dang.

“This international green bond initiative marks a new stepping stone on the journey toward those goals.”

The green bonds issued by HDBank to international investors helps diversify HDBank’s financial resources, support sustainable growth strategy, and create a foundation for the bank to continue attracting more international funding for green finance, sustainable development, and inclusive finance initiatives in Vietnam.

This, in turn, helps potential customers access capital to deploy solar energy projects, electric vehicles, green buildings, and energy-saving solutions.

The projects financed with the proceeds of the green bond issuance must undergo a rigorous screening process, meet environmental and social risk management requirements, and the eligibility criteria outlined in the bank's Sustainable Finance Framework.

These projects are expected to help reduce approximately 102,000 tons of CO₂ over 10 years, improve the quality of the living environment, and support Vietnam's net-zero 2050 commitment.

“IFC is pleased to partner with HDBank on its impressive growth journey, with this landmark international green bond issuance representing a significant step in expanding the bank’s climate finance portfolio and advancing Vietnam’s economic and social progress,” said Weichuan Xu, IFC’s Lead for Financial Institutions Group in Vietnam, Cambodia, and Laos.

“The funds raised will support projects that foster sustainable industries, generate jobs, and strengthen communities.

“This initiative underscores IFC’s commitment to Vietnam’s long-term development, while serving as a catalyst to mobilize additional investors in promoting inclusive and resilient growth across the country."

Juan Jose Dada Ortiz, Head of Financial Institutions at FMO, stated that FMO is delighted to begin its partnership with HDBank through the first-ever green bond program issued by the Vietnamese bank, a significant milestone that will lay a solid foundation for creating new opportunities to help FMO and its investors, together with HDBank, promote inclusive and sustainable economic growth in Vietnam.

“Vietnam continues to be a priority market for BII as we invest in Southeast Asia’s green energy transition,” said Srini Nagarajan, Managing Director and Head of Asia of BII.

“Our participation in HDBank’s inaugural green bond program, together with IFC and FMO, sends a strong signal about the readiness and potential of Vietnam’s sustainable finance ecosystem.

“This will help attract more capital into climate responsible projects, overall, supporting the country’s net-zero 2050 ambitions.”

With this milestone, HDBank reaffirms its commitment to sustainable finance as well as the prosperity of its customers, partners, and the community, expanding its presence on the global financial map.