HDBank and Proparco increase credit limit to $100M for climate finance

The Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank) and Proparco, the private sector financing arm of Agence Française de Développement Group (AFD Group), have signed a credit facility worth $50 million.

The new agreement brings the total credit facility for HDBank to $100 million, showcasing Proparco's trust and commitment to HDBank.

The proceeds will be used to finance or refinance climate projects and support women-owned and 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 few years.

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 Vietnam.

HDBank now serves as a bridge between Vietnamese enterprises and Proparco to explore potential collaborations to boost sustainable development globally.

Along with other international financial institutions, Proparco has had a great contribution to help HDBank establish and perfect its environmental and social risk management policy and system.

Proparco's support for renewable energy projects, climate finance and gender equality is crucial and essential for HDBank to further expand its partnerships with major financial institutions globally.

This credit agreement not only provides funding to HDBank 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 Sustainability Report in 2024 in Vietnam and also pioneered the establishment of the ESG Committee under its board of directors to directly lead and supervise the implementation of sustainable development goals and initiatives.

HDBank has been recognised by many international organisations in recent years for its positive contributions to green credit and sustainable development.

Re-disseminated by  Wealth and Society