HDBank secures $50M credit facility from Proparco

This additional funding brings Proparco's total provision to HDBank to $100 million. The funds are earmarked for climate finance projects, support for women-owned businesses, and compliance with the 2X Challenge program—an international initiative aimed at advancing gender equality and sustainable development.

HDBank representatives receive US$50 million in credit from Proparco on Sept. 16, 2024. Photo courtesy of HDBank

HDBank and Proparco first partnered in August 2021, when Proparco provided a five-year, $50 million credit facility to finance renewable energy projects in Vietnam.

HDBank currently acts as a conduit between Vietnamese businesses and Proparco, contributing to the achievement of global sustainable development goals.

A representative from HDBank highlighted Proparco’s role in supporting the bank's development of its environmental and social risk management systems. This collaboration is a significant milestone, enabling HDBank to strengthen its relationships with major global financial institutions, particularly in the field of green finance.

"The credit agreement with Proparco underscores HDBank's commitment to implementing ESG (Environment, Social, and Governance) practices in line with international standards," said the HDBank representative.

HDBank is one of the first commercial banks in Vietnam to release a dedicated report on sustainable development this year.

The bank has also established an ESG Committee under its Board of Directors to oversee and drive the implementation of its sustainability goals and initiatives.

Recognized for its contributions to the green economy, HDBank has received several accolades, including the Green Deal Award and Best Green Financing in Vietnam from the Asian Banker Vietnam Excellence Awards. Additionally, the Asian Development Bank (ADB) named HDBank the "Leading Partner Bank in Vietnam" in its Trade and Supply Chain Finance Program (TSCFP).

Proparco, a subsidiary of the French Development Agency (AFD), has been supporting private sector development for over 40 years. Its work spans loan financing, direct investment, and advisory services to private enterprises and financial institutions in Africa, Asia, Latin America, and the Middle East, with a focus on infrastructure, renewable energy, agriculture, financial institutions, healthcare, and education.