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Vietnam: Proparco is supporting financing for “green projects” with HDBank

Project

Financial services
Locaux de HDBank
©HDBank
Signature date
Location
Vietnam
Financing tool
Loan
Financing amount (Euro)
42158516,02
Financing details
USD 50m loan
Customer
Ho Chi Minh City Development JSC Bank (HDBank)
Type of customer
Financial institution
Country of headquarters
Vietnam
Project number
PVN1046
Environmental and social ranking
IF-B
Climate co-benefits
Project with climate co-benefits
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This information is given at the time of signature, without prejudice to any developments in the operation/project.

The USD 50m loan to the Vietnamese bank HDBank will allow it to develop its portfolio of projects with climate co-benefits.

Client presentation

Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank) was set up in 1989 and is a private Vietnamese bank that mainly operates in the distribution and SME sectors. Since 2018, HDBank has been stepping up its efforts to finance green projects, especially for solar power plants and photovoltaic rooftops.

Project description

The USD 50m credit line is earmarked for the development of the green loan portfolio of HDBank, which is focusing on financing large-scale solar parks and smaller projects for solar rooftops.

Project impact

The main project impacts are as follows:

  • Support for the economic development of Vietnam by financing some 20 SMEs and at least 1 large-scale solar park (between 45 and 50 MW) 
  • Financing for projects with climate co-benefits (USD 50m) which will follow the Common Principles for Climate Mitigation 
  • Over 60 jobs will be created/supported at HDBank and over 1,300 jobs supported in the companies that will be targeted by the credit line over the next 5 years. 

The project will thereby contribute to SDG 8 (Decent work and economic growth) and SDG 13 (Climate action).