First private lender successfully issues $118M in green bonds

The Hồ Chí Minh City Development Joint Stock Commercial Bank (HDBank, stock code: HDB) has issued VNĐ3 trillion (US$118 million) in green bonds, becoming Việt Nam's first private bank to do so.

The green bonds aim to finance environmentally sustainable projects and promote green economic development with maturities of two, three, and five years, aligning with International Capital Market Association (ICMA) and Loan Market Association (LMA) compliance standards.

The green bonds have attracted considerable interest from prominent institutional investors, achieving full order volume within a remarkably short timeframe.

The capital raised from these green bonds will be allocated to projects that align with the criteria outlined in HDBank’s “Sustainable Finance Framework,” with the aim of contributing to environmental protection and advancing green economic development.

Prior to the issuance, HDBank was already among the first banks in Việt Nam to announce a “Sustainable Finance Framework” in accordance with the standards of ICMA and LMA.

This framework was developed with the technical assistance of the International Finance Corporation (IFC), a member of the World Bank (WB), and has received a “very good” rating from the internationally recognised ratings agency Moody’s.

Phạm Quốc Thanh, CEO of HDBank, said: “The announcement of the Sustainable Finance Framework and the pioneering issuance of green bonds in Việt Nam serve as clear evidence of HDBank’s commitment to a sustainable development strategy.

“This initiative not only generates momentum for green growth but also facilitates the mobilisation of medium- and long-term capital from green bonds to support projects that provide environmental benefits, reduce CO2 emissions, and assist the Government in achieving carbon neutrality by 2050.”

HDBank is also one of the first banks in Việt Nam to establish an environmental and social risk management system aimed at promoting green credit and sustainable finance.

For several years, the lender has received high commendations from international financial institutions such as the IFC, ADB, DEG, and Proparco, for its initiatives in climate finance and gender equality.

It’s also the first bank in Việt Nam to establish an ESG (Environmental, Social, and Governance) Committee under its Board of Directors to lead and oversee sustainable development initiatives.

HDBank also released its own report on Vietnamese sustainable development in 2024.

Notably, 2024 marks the fifth consecutive year in which HDBank has been recognised as one of the Top 20 in the Vietnam Sustainable Development Index (VNSI), as established and evaluated by the Hồ Chí Minh City Stock Exchange (HoSE).