HDBank and Proparco credit financing tops $100 million
HDBank and Proparco credit financing tops $100 million
HDBank has strengthened its existing collaboration with Proparco by securing a new credit facility of $50 million towards its sustainable development targets.
Last week, HDBank and Proparco, a subsidiary of the AFD Group, signed a credit facility for $50 million. With the transaction, Proparco has so far granted total financing up to $100 million to HDBank, underscoring Proparco’s trust and commitment to accompanying HDBank on its sustainable development journey.
The credit facility aims to fund climate finance projects and women-owned businesses in line with the 2X Challenge criteria, a global initiative to promote gender equality and sustainable development.
Previously, HDBank and Proparco made great strides in strengthening their partnerships. In 2021, Proparco granted a five-year senior credit facility to HDBank for $50 million to help the bank finance renewable energy projects in Vietnam.
HDBank has acted as a bridge between its corporate clients and Proparco and vice versa to explore any potential collaboration for the purpose of boosting sustainable development in Vietnam and globally. Along with other international financial institutions, Proparco has made a positive contribution to the process of building and perfecting HDBank’s environmental and social risk management system.
It marks an important milestone for HDBank when securing Proparco’s support for renewable energy, climate finance, and gender equity. Thus, the bank can expand its partnership with other financial institutions globally, especially in green finance. The credit facility with Proparco serves a strong testament to HDBank’s efforts to implement the environmental, social, and governance (ESG) criteria in line with international standards.
In Vietnam, HDBank was the first commercial bank to release its sustainable development report in 2024. The bank is also a pioneer in setting up an ESG committee to directly lead and monitor the implementation of sustainable development goals and initiatives.
In light of the positive contributions to green finance and sustainable development, HDBank has earned recognition and appreciation from many international organisations over the past few years.
HDBank is the first member bank of the Asian Development Bank (ADB) to receive the Green Deal Award. The bank was also named Best Green Financing in Vietnam at The Asian Banker Vietnam Excellence Awards. In early September, the ADB recognised HDBank as a leading partner in Vietnam for a second consecutive year under the Trade and Supply Chain Finance Programme.
Proparco is a development finance institution under the French Development Agency. Over the past 40 years, Proparco has supported private sector development by offering loan financing, direct investment, and consulting support to private sector enterprises and financial institutions in Africa, Asia, Latin America, and the Middle East. Its action focuses on the key development sectors, including infrastructure, mainly for renewable energies, agribusiness, financial institutions, health, and education.
