HDBank successfully issued $100 million in international green bonds.

(Chinhphu.vn) - Recently, Ho Chi Minh City Development Commercial Bank (HDBank, ticker HDB) completed the second issuance of international green bonds worth US$50 million to the Netherlands Enterprise Development Bank (FMO) and the UK International Investment Organization (BII), thereby officially completing its US$100 million green bond program in the international market in 2025.

The success of the 2025 Green Bond Program lays the foundation for HDBank to continue attracting international capital for green finance, sustainable development, and inclusive finance initiatives in Vietnam.

The "Ceremony announcing the signing of the contract and successful issuance of the 2025 Green Bonds" recently took place between HDBank and investors including FMO, BII, and IFC (International Finance Corporation of the World Bank), witnessed by the British Consulate General and the Dutch Consulate General in Ho Chi Minh City.

This issuance includes a private placement of US$30 million to FMO and US$20 million to BII, for a total face value of US$50 million, with a 3-year term. This is the second tranche in HDBank's US$100 million Green Bond Program to be issued to the international market in 2025.

Previously, IFC was the investor in the first tranche with a total value of $50 million, creating the conditions for FMO and BII to jointly invest in the second tranche. The bonds are non-convertible, without warrants, and unsecured.

Mr. Nguyen Huu Dang, General Director of HDBank, stated that HDBank always places sustainable development at the heart of its strategic goals, implemented through solutions aimed at delivering the best value to customers, partners, and the community. The recent International Green Bond Program marks a new and important step on the journey towards achieving those goals.

The international green bonds issued by HDBank contribute to diversifying financial resources, supporting the Bank's sustainable growth strategy, and creating a foundation for HDBank to continue attracting international capital for green finance, sustainable development, and inclusive finance initiatives in Vietnam. This, in turn, helps potential customers access capital to implement solar energy projects, electric vehicles, green buildings, and energy-saving solutions.

Projects selected to be funded by these green bonds must undergo a rigorous screening process, meet environmental and social risk management regulations, and fulfill the green project criteria outlined in the Bank's Sustainable Finance Framework. These projects are expected to contribute to a reduction of approximately 102,000 tons of CO₂ over 10 years, improve the quality of life, and support Vietnam's Net Zero 2050 commitment.

Mr. Weichuan Xu, Head of IFC's Financial Institutions Group in Vietnam, Cambodia, and Laos, stated that this international green bond issuance marks a significant step in expanding the climate finance portfolio and contributes to promoting Vietnam's socio -economic development. The funds raised will be used for projects aimed at building sustainable industries, creating jobs, and improving the quality of life for communities. IFC's participation in this initiative demonstrates its long-term commitment to Vietnam and acts as a catalyst to attract more investors to promote inclusive growth and the resilience of the economy.

Mr. Juan Jose Dada Ortiz, Head of Financial Institutions at FMO, shared: "FMO is delighted to begin its partnership with HDBank through the first-ever Green Bond program issued by HDBank – a significant milestone that we believe will provide a solid foundation for creating new opportunities to help FMO and its investors, together with HDBank, promote inclusive and sustainable economic growth in Vietnam."

From the perspective of a financial investor, Srini Nagarajan, CEO and Head of Asia at BII, stated: "Vietnam continues to be a priority market for BII in its investment strategy for green energy transition in South Asia. BII's participation in the first-ever green bond program issued by HDBank, along with IFC and FMO, is a clear signal of the readiness and potential of Vietnam's sustainable financial ecosystem. This will encourage the attraction of capital flows towards climate action projects, and more broadly, Vietnam's Net Zero ambition by 2050."

With this milestone, HDBank is committed to continuing to support the prosperous development of its customers, partners, and the community, and expanding its presence on the global financial map.

Minh Thi

Source: https://baochinhphu.vn/hdbank-phat-hanh-thanh-cong-100-trieu-usd-trai-phieu-xanh-quoc-te-102260112121213495.htm