HDBank completes issuance of $100 million green bonds to international investors

HDBank completes issuance of $100 million green bonds to international investors

HDBank has successfully completed its US$100 million international green bond initiative in 2025 with the issuance of a second tranche worth $50 million to the Dutch Entrepreneurial Development Bank (FMO) and British International Investment (BII), the UK’s development finance institution and impact investor.

HDBank’s international green bond programme strengthens funding diversification and supports sustainable, green and inclusive finance initiatives in Việt Nam. — Photo courtesy of the bank

The Ho Chi Minh City Development Commercial Bank (HDBank, ticker symbol: HDB) has successfully issued a second tranche of international green bonds worth US$50 million to the Dutch Entrepreneurial Development Bank (FMO) and British International Investment (BII), the UK’s development finance institution and impact investor, completing its $100 million international green bond initiative in 2025.

The announcement was made at the “$100 Million Green Bond Issuance Disclosure Ceremony” recently held between HDBank and its green bond investors, also including the International Finance Corporation (IFC), a World Bank arm, in the presence of the Dutch deputy consul general and representatives from the UK consulate in HCM City.

The bonds included $30 million privately issued to FMO and $20 million to BII. The first tranche was issued to IFC, which facilitated the participation of FMO and BII in the second.

The bonds have a three-year term, are non-convertible and unsecured and issued without warrants.

Nguyễn Hữu Đặng, CEO of the lender, said: “Sustainable development goals lie at the heart of HDBank’s strategy, which is centred on delivering the best value for customers, partners and the community. This international green bond initiative marks an important stepping stone on our journey towards achieving those goals.”

The green bonds issued to international investors help diversify the bank’s funding sources, support its sustainable growth strategy and create a foundation for it to continue attracting additional international capital for green finance, sustainable development and inclusive finance initiatives in Việt Nam.

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

Projects financed by the proceeds of the green bond issuance must undergo a rigorous screening process, meet environmental and social risk management requirements, and comply with the eligibility criteria outlined in the bank’s Sustainable Finance Framework. These projects are expected to help reduce 102,000 tonnes of CO₂ over 10 years, improve the quality of the environment and support Việt Nam’s 2050 Net Zero commitment.

Weichuan Xu, IFC’s lead for the Financial Institutions Group in Việt Nam, Cambodia and Lao PDR, said: “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 Việt Nam’s economic and social progress.

“The funds raised will support projects that foster sustainable industries, generate jobs and strengthen communities. This initiative underscores IFC’s commitment to Việt Nam’s long-term development, while serving as a catalyst to mobilise additional investors in promoting inclusive and resilient growth across the country.”

Juan Jose Dada Ortiz, head of financial institutions at FMO, said: “FMO is delighted to begin its partnership with HDBank through the first-ever green bond programme issued by the bank – a significant milestone that we believe 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 Việt Nam.”

Srini Nagarajan, managing director and head of Asia at BII, said: “Việt Nam continues to be a priority market for BII as we invest in South-East Asia’s green energy transition. Our participation in HDBank’s inaugural green bond programme, together with IFC and FMO, sends a strong signal about the readiness and potential of Việt Nam’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 shared prosperity of its customers, partners and the wider community, while expanding its presence on the global financial map. 

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