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Proparco increases credit like to HDBank to $100 million, underpins sustainable development efforts
The Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank – HOSE: HDB) and Proparco, a French development finance institution, have signed a credit facility worth US$50 million in HCM City on September 16.
HDBank and Proparco’s leaders at a ceremony for signing a credit facility worth US$50 million in HCM City on September 16. — Photo courtesy of HDBank
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The new funding brings the total financing for HDBank to $100 million, showcasing Proparco's trust in and commitment to HDBank.
The money will be used to finance/refinance climate projects and support women-led enterprises that meet the criteria of the 2X Challenge Programme, a global initiative to promote gender equality and sustainable development.
HDBank and Proparco have made significant strides in cooperation in the past.
In August 2021, for the first time, Proparco granted a five-year credit facility worth $50 million to HDBank to help it finance renewable energy projects in Việt Nam.
HDBank now serves as a bridge between Vietnamese enterprises and Proparco to explore potential collaborations for the purpose of boosting sustainable development globally.
Along with other international financial institutions, Proparco has helped HDBank establish and perfect its environmental and social risk management system.
Strengthening support for renewable energy projects, climate finance and promoting gender equality along with Proparco is crucial and essential for HDBank to further expand its partnerships with major financial institutions globally, especially for green finance.
This credit agreement with Proparco not only provides capital but also affirms HDBank's strong commitment to effectively implementing ESG (Environmental, Social, and Governance) standards according to international norms.
HDBank became the first commercial bank to publish a report on sustainable development in 2024 in Việt Nam and also pioneered the establishment of the ESG Committee under its board of directors to directly lead and supervise implementation of sustainable development goals and initiatives.
HDBank has been recognised and honoured by many international organisations in recent years for its positive contributions to green credit and sustainable development.
For instance, HDBank was the first partner bank of the Asian Development Bank to receive the Green Deal Award.
It was also honoured for “Best Green Financing in Vietnam” at The Asian Banker Vietnam Excellence Awards, and most recently ADB recognised HDBank for a second consecutive time as the "Leading Partner Bank in Vietnam" in its Trade and Supply Chain Finance Program.
Proparco is a development finance institution under the French Development Agency (Agence Française de Développement ).
It has been supporting private sector development for over 40 years by providing funding, direct investment and consultation to private enterprises and financial institutions in Africa, Asia, Latin America, and the Middle East.
Its operations focus on key development sectors like infrastructure, renewable energy, agriculture, financial institutions, health, and education.
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