Vietnam’s Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank) has issued green bonds worth VND 3 trillion ($118 million), the first in the country to do so.
HDBank issues $118M in green bonds to fund eco-friendly projects, becoming Vietnam's first private bank to do so.
The green bonds are part of HDBank's commitment to sustainable development and carbon neutrality by 2050.
HDBank’s Sustainable Finance Framework ensures transparent and responsible financing for projects promoting environmental protection.
HDBank is the first private bank in Vietnam to issue green bonds, marking a pivotal moment in the country's efforts to finance sustainable development. The bonds are set to fund a range of eco-friendly projects, demonstrating the bank's commitment to promoting green economic growth and environmental protection.
Commitment to a sustainable future
The green bonds of HDBank are especially for funding those projects that correspond to the ‘Sustainable Finance Framework’ designed by the bank. The framework developed with International Finance Corporation (IFC), will allow the bank's funds to only be utilised through projects that support internationally recognised environment and social criteria. With this issuance, HDBank will be providing long-term capital for projects that can help reduce carbon emissions and reach Vietnam's set goal toward carbon neutrality in 2050. Sustainable financing is a prime step taken by the bank.
A growing focus on green finance
The green bond issuance is an integral part of HDBank's overall sustainability integration strategy into its operations. The bank, in fact, has been taking a proactive stand on environmental and social risk management. HDBank was also one of the first financial institutions in Vietnam to establish a fully-fledged dedicated ESG committee to oversee sustainability initiatives and ascertain that its financial products support Vietnam's green growth objectives.
For years, HDBank has continuously received recognition from international organisations, including the IFC, ADB (Asian Development Bank ), DEG (Deutsche Investitions- und Entwicklungsgesellschaft) and Proparco, for its engagement in climate finance and promoting gender equality.This sends a powerful message that the bank has truly considered sustainable finance and is committed to contributing to positive environmental and social outcomes through its products.
Raising capital with a green focus
The green bonds have garnered significant attention from institutional investors, with the full order volume achieved in a remarkably short timeframe. This strong demand reflects the growing interest in sustainable investment opportunities, particularly in emerging markets like Vietnam, where there is an increasing push toward environmentally conscious development.
Leading the green finance charge in Vietnam
The green bond issuance by HDBank marks a milestone in Vietnam's pursuit of a greener, more sustainable future. As one of the first private banks to issue green bonds in the country, HDBank is paving the way for other financial institutions. Through its continuous commitment to sustainable finance, HDBank plays a crucial role in the furtherance of green economic development in Vietnam while supporting the global effort to combat climate change.
Through such initiatives, HDBank is showcasing sustainable finance is no longer just a trend, but rather the future of banking and business. This is where financing eco-friendly projects and further promoting green economic growth can really be positioned at the forefront as one of the regional leaders in this sustainable financial landscape.
The issuance of $118 million in green bonds by HDBank is a landmark development in Vietnam's financial sector. With this move, HDBank is helping to finance eco-friendly projects and promote a greener economy. The bank’s commitment to sustainability, supported by its innovative financing models and its partnership with global institutions like the IFC, positions it as a leader in green finance. As the country continues to face environmental challenges, HDBank's efforts will play a key role in fostering long-term sustainable development.