FinDev Canada, JICA, and SMBC pledge $215 million to HDBank

FinDev Canada, JICA, and SMBC pledge $215 million to HDBank

Canada's bilateral Development Finance Institution, FinDev Canada, Sumitomo Mitsui Banking Corporation (SMBC), and the Japan International Cooperation Agency (JICA) on August 2 announced the signing of a $215 million syndicated loan facility for HDBank.

The loan facility will enable HDBank to strengthen agricultural value chains, rural development, and climate finance with a focus on green projects. It will also support the expansion of micro, small and medium-sized enterprises (MSMEs), particularly women-owned and led MSMEs, while providing social housing loans to low-income customers.

FinDev Canada will contribute $75 million as part of the loan facility, with at least 40 per cent of the proceeds directed towards agricultural development, targeting retail customers and MSMEs along the agricultural value chains, which face challenges in accessing financing and technology.

Additionally, to improve women's financial inclusion, FinDev Canada will direct at least 30 per cent of the loan proceeds to 2X aligned women owned and led MSMEs, thereby enhancing women's economic participation and empowerment across the bank's portfolio.

Vietnam is particularly vulnerable to climate change as it faces risks such as droughts, floods and saltwater intrusion that could reduce GDP by 12 per cent to 14.5 per cent by 2050. In line with its national goals to reduce rural pollution and greenhouse gas emissions by 2030, FinDev Canada will direct at least 30 per cent of the loan proceeds to climate finance projects, which include renewable energy, energy efficiency and wastewater treatment.

"FinDev Canada is pleased to partner with HDBank, SMBC and JICA on this landmark facility, one of our first direct investments in Vietnam. This partnership reflects our shared ambition to support long-term development and amplify impact across the country. We recognise the critical role the financial industry plays in advancing economic growth, gender equality and climate action. By leveraging our combined resources and expertise, we are helping shape a more sustainable future," said Paulo Martelli, VP and chief investment officer of FinDev Canada.

VIR