HCM CITY — The HCM City Development Joint Stock Commercial Bank (HDBank) on July 30 signed a US$721 million international syndicated social loan with the Asian Development Bank (ADB), Standard Chartered and other international financial institutions, marking the largest international syndicated social loan ever successfully raised by a Vietnamese organisation.

The landmark transaction underscores the strong confidence of global financial institutions in HDBank and Việt Nam's long-term economic prospects.

The proceeds will be used to expand access to finance for micro-, small- and medium-sized enterprises (MSMEs), particularly women-owned businesses, thereby promoting financial inclusion and sustainable development in Việt Nam.

The facility was structured in accordance with the Social Loan Principles and HDBank's Sustainable Finance Framework, with ADB and Standard Chartered serving as joint coordinators.

Six other international financial institutions acted as mandated lead arrangers and bookrunners: ANZ, Cathay United Bank, Commerzbank, Maybank Securities, MUFG Bank and the State Bank of India.

The transaction attracted significantly stronger-than-expected interest from international investors, with commitments reaching $721 million, around 60 per cent above the original target.

According to the CEO of Standard Chartered Vietnam, the facility is the largest syndicated social loan ever raised by a Vietnamese organisation. It was substantially oversubscribed, reflecting strong participation from international lenders.

"This achievement reflects investors' confidence in HDBank and its leadership team, and demonstrates optimism about Việt Nam's long-term growth prospects and the growing appeal of the country's sustainable finance market among global investors."

Beyond setting a new benchmark in size, the transaction further strengthens HDBank's position in the international capital markets and enhances its ability to access high-quality funding at competitive costs to support the country's socio-economic development.

Funding for communities and sustainable growth

Speaking at the signing ceremony, Labour Hero Dr Nguyễn Thị Phương Thảo, Strategic Investor and Permanent Vice Chairwoman of HDBank's Board of Directors, said: "This loan marks a new chapter for HDBank and for me personally. It is our first financing facility dedicated exclusively to social initiatives, including programmes supporting women."

According to Thảo, the successful transaction recognises HDBank's long-standing commitment to supporting communities through programmes benefiting individuals and businesses, as well as healthcare, education, culture, sports, and initiatives for women and children.

"For the first time, a transaction involving 21 international financial institutions, representing the largest financing package dedicated to social and sustainable development activities, has been successfully executed," she said.

Trần Hoài Nam, HDBank's Permanent Deputy CEO, said the proceeds would further strengthen the bank's medium- and long-term funding base while expanding lending to SMEs, particularly women-led businesses, contributing to financial inclusion and sustainable economic growth.

Before this transaction, HDBank had successfully secured $270 million in green financing and $380 million in sustainable finance from international development finance institutions, including IFC, ADB, Proparco, DEG, LeapFrog, FMO, BII, JICA, FinDev and SMBC.

With the $721 million international syndicated social loan, HDBank has not only set a new record in Việt Nam's capital market but also reinforced its ability to mobilise international funding in line with global sustainable finance standards, creating additional resources to support businesses and contribute to the country's sustainable development goals. — BIZHUB/VNS