The Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank, stock code: HDB) has issued VND3 trillion (US$118 million) in green bonds, marking a significant milestone as Viet Nam’s first private bank to do so.
The green bonds, designed to finance environmentally sustainable projects, come with maturities of two, three, and five years. They are fully compliant with the standards of the International Capital Market Association (ICMA) and the Loan Market Association (LMA).
This groundbreaking initiative has garnered robust interest from institutional investors, achieving full subscription within a short period.
The proceeds from the green bonds will be allocated to projects meeting the criteria in HDBank’s “Sustainable Finance Framework.” This aligns with the bank’s mission of advancing environmental protection and driving green economic development.
Prior to this issuance, HDBank was among the first banks in Viet Nam to establish a “Sustainable Finance Framework,” crafted with support from the International Finance Corporation (IFC), a World Bank member. The framework earned a “very good” rating from Moody’s.
Phạm Quoc Thanh, CEO of HDBank, stated, “The launch of the Sustainable Finance Framework and green bonds underscores our dedication to sustainable development.
This initiative not only fosters green growth but also secures long-term capital for projects that cut CO2 emissions, supporting Viet Nam’s carbon neutrality goal for 2050.”*
HDBank’s leadership in sustainable finance extends beyond this milestone. It was among the first Vietnamese banks to establish an environmental and social risk management system, promoting green credit and sustainable finance.
For years, the bank has earned accolades from international institutions such as the IFC, Asian Development Bank (ADB), DEG, and Proparco for its achievements in climate finance and gender equality initiatives.
Notably, HDBank was the first bank in Viet Nam to establish an Environmental, Social, and Governance (ESG) Committee to oversee its sustainability efforts.
In 2024, the bank published a report on sustainable development in Viet Nam and was recognized for the fifth consecutive year as one of the Top 20 companies in the Vietnam Sustainable Development Index (VNSI) by the Ho Chi Minh City Stock Exchange (HoSE).
