ADB and HDBank sign $100 million loan targeting women-owned businesses

ADB and HDBank sign $100 million loan targeting women-owned businesses

On July 7, the Asian Development Bank signed a $100 million loan with Ho Chi Minh City Development Joint Stock Commercial Bank to expand access to finance for micro, small, and medium-sized enterprises in Vietnam, with a focus on those that are women-owned.

Photo: ADB

As mandated lead arranger and co-coordinator with Standard Chartered Bank (Singapore) Limited, ADB also brought together 29 commercial banks to mobilise an additional $621 million in financing and expand the resources available to HDBank. The transaction strengthens HDBank’s access to international capital and highlights ADB’s role in mobilising private financing to support inclusive financial systems across Asia-Pacific.

“Strengthening access to finance for micro, small, and medium-sized enterprises (MSMEs), particularly women-owned businesses, is essential for inclusive and resilient growth in Vietnam,” said ADB country director for Vietnam Shantanu Chakraborty. "ADB’s partnership with HDBank will help channel much-needed capital to underserved enterprises and support broader participation in economic opportunities.”

The financing will support HDBank’s medium- to long-term lending, with at least 40 per cent of ADB’s financing directed to women-owned MSMEs to provide more opportunities for female business owners. Proceeds will be on-lent to eligible MSMEs in line with HDBank’s sustainable finance framework, expanding support for underserved segments.

MSMEs are a cornerstone of Vietnam’s economy, accounting for more than 97 per cent of registered firms, about 36 per cent of total employment, and 40 per cent of the country’s GDP. Yet many MSMEs–especially women-owned businesses–continue to face barriers to formal financing, including limited collateral, constrained credit histories, and perceived risks associated with smaller borrowers.

The facility will be complemented by ADB capacity-building technical assistance to help develop tailored financial products, promote financial inclusion, and support the sustainable growth of MSMEs across the country.

VIR