Share the page

Supporting HD Bank’s climate finance and gender equality strategy in Vietnam

Project

Financial services
HDBANK
Signature date
Location
Vietnam
Financing tool
Loan
Financing amount (Euro)
47321597,5771
Customer
Ho Chi Minh City Development JSC Bank
Type of customer
Financial institution
Country of headquarters
Vietnam
Project number
PVN1054
Environmental and social ranking
IF-A
Climate co-benefits
Project with climate co-benefits
Download the report

Proparco is continuing its support to HD Bank by allocating it a $50 million loan to provide financing for climate projects and women entrepreneurs.

Client presentation

HD Bank is one of the top ten commercial banks in Vietnam.

Project description

Following a first loan by Proparco in August 2021 ($50 million), a new loan has been allocated to HD Bank for the same amount. 70% of the funds will go to climate finance  projects and 30% to support women-owned businesses, meaning the project qualifies for the 2X Challenge. Proparco will also help the bank improve its environmental and social (E&S) risk management system, enabling it to strengthen its ties with the main international financial institutions, in particular in the field of green finance.

Project impact

The expected impacts of this financing are as follows:

Employment

  • 4,330 jobs supported over the next 5 years in the companies financed by the bank (indirect jobs)

Climate

  • This financing has 70% of climate mitigation co-benefits (renewable energy and electric vehicles)

Gender

  • Contribution to gender equality through a commitment to finance companies aligned with the 2X Challenge (30% of Proparco’s financing)

The project will thereby contribute to the achievement of SDG 5 (Gender equality), SDG 8 (Decent work and economic growth) and SDG 13 (Climate action).