HO CHI MINH CITY DEVELOPMENT JOINTStatus: Approved investment
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Who is our customer
Established in 1989, Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank) is a 100% privately-owned commercial bank in Vietnam, with a total asset size of USD 9 billion and equity of ~USD 800 million as on June 2019. It has a market share of ~ 2% of both system assets and deposits and is among the top 30 listed companies by market capitalization in Vietnam. Largest shareholder with 13.34% stake is Sovico Holdings, a conglomerate with interest in aviation, banking, real estate and hydro power.
What is our funding objective?
This trade finance facility will give HDBank more capacity to grow their trade finance business especially in the renewable energy space. The underlying goods are earmarked to be ‘green’, making this the first green trade finance transaction ever for FMO.
Why do we fund this investment?
With the proposed transaction, FMO meets its green ambitions and regains its foothold in the Financial Services space in Vietnam which is one of the fastest growing economies in South-East Asia. HD Bank is front runner in the green financing programs in Vietnam, demonstrating commitment to sustainable growth of renewable energy. Vietnam ranking amongst the top 10 polluted countries in the world, this project is closely aligned to our strategic objective of supporting SDG 13.
What is the Environmental and Social categorization rationale?
The bank is classified as E&S Category A in accordance with FMO’s Policy. As per the Policy for trade finance facilities with a tenor < 1 year, the underlying transactions are required to be compliant with FMO’s exclusion list.
- Website customer/investment
- Financial Institutions
- Publication date
- Effective date
- Total FMO financing
- USD 5.00 MLN
- FMO NV
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C)