HDBank completes $100 million international green bond scheme

On January 7, HDBank issued a second tranche of international green bonds worth $50 million to Dutch development bank FMO and British International Investment (BII), the UK’s development finance institution and impact investor, completing its $100 million green bond initiative for 2025.

The issuance was announced at a disclosure ceremony attended by HDBank and its green bond investors, including FMO, BII, and the International Finance Corporation (IFC), in the presence of representatives from the Netherlands and UK consulates in Ho Chi Minh City.

The green bonds comprise $30 million placed privately with FMO and $20 million with BII, both with a three-year tenor, forming the second tranche of HDBank’s $100 million international green bond programme for 2025. The issuance follows a first $50 million tranche subscribed by the International Finance Corporation, which paved the way for FMO and BII to participate in the second round. The bonds are unsecured, non-convertible, and issued without warrants.

“Sustainable development goals reside at the heart of HDBank’s strategy which is featured by the best value for customers, partners, and the community,” said Nguyen Huu Dang, CEO of HDBank. “This green bond initiative marks a new stepping stone on the journey towards those goals.”

The green bonds help diversify HDBank’s funding base and support its sustainable growth strategy, while strengthening the foundation for attracting further international capital for green, sustainable, and inclusive finance in Vietnam. The proceeds will support customer access to financing for projects such as solar power, electric vehicles, green buildings, and energy-efficiency solutions.

The projects financed with the proceeds of the green bond issuance must undergo a rigorous screening process, meet environmental and social risk management requirements, and the eligibility criteria outlined in the bank’s Sustainable Finance Framework. These projects are expected to help reduce approximately 102,000 tonnes of carbon over 10 years, improve the quality of living environment, and support Vietnam’s net-zero commitments.

“The IFC is pleased to partner with HDBank on this landmark international green bond issuance, which expands the bank’s climate finance portfolio and supports Vietnam’s economic and social development,” said Weichuan Xu, IFC’s lead for the Financial Institutions Group in Vietnam, Cambodia, and Laos. “The proceeds will fund sustainable projects, create jobs, and strengthen communities, while helping mobilise further investment in inclusive and resilient growth.”

Juan Jose Dada Ortiz, head of Financial Institutions at FMO, said, “FMO is pleased to begin its partnership with HDBank through its first green bond issuance, a milestone that, we believe, will create new opportunities to work with HDBank in supporting inclusive and sustainable economic growth in Vietnam.”

Srini Nagarajan, managing director and head of Asia at BII, said, “Vietnam remains a priority market for BII as we invest in Southeast Asia’s green energy transition. Our participation in HDBank’s inaugural green bond programme, alongside IFC and FMO, signals the strength of Vietnam’s sustainable finance ecosystem and will help mobilise more capital for climate-responsible projects supporting the country’s net-zero goals.”

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