Project detail - Ho Chi Minh City Development Joint Stock Commercial Bank

Ho Chi Minh City Development Joint Stock Commercial Bank

Status: Approved investment
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Disclaimer

The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.

Who is our customer?

Established in 1989, Ho Chi Minh City Development Joint Stock Bank (“HD Bank”) is a listed commercial bank in Vietnam offering a full range of products and services to individuals, small and medium-sized enterprises (“SMEs”) and corporates. The bank caters to over six million retail customers and over 67 thousand corporates throughout Vietnam.

What is our funding objective?

FMO participates with an amount of USD 30 million in a three-year, IFC-led Green bond issuance. The proceeds will be fully (100%) used for qualifying green projects.

Why do we fund this investment?

This issuance will contribute to the development of green bonds as a new asset class in Vietnam while helping HD Bank in expanding its climate finance portfolio and as such be classified as 100% green.

What is the Environmental and Social categorization rationale?

At the institutional level, HD Bank has been classified as Category A under FMO’s Sustainability Policy due to the overall exposure to sectors with significant environmental and social risks, such as construction, real estate, manufacturing, and agriculture. For this transaction, we applied the Asset Class approach, focusing due diligence and policy E&S requirements on the dedicated Environmental and Social Management System (ESMS) that will govern the green bond and its eligible underlying projects. E&S requirements include compliance with the EDFI Exclusion List, national E&S laws, and IFC Performance Standards (specifically, wind projects supported by the bond will be required to implement the IFC Performance Standards). Separately, at sub-project level, high-risk (Category A ) investments/projects are excluded from financing under the bond.

More investments

Date Total FMO financing
5/25/2021 USD 5.00 MLN
Website customer/investment
https://hdbank.com.vn/
Region
Asia
Country
Viet Nam
Sector
Financial Institutions
Publication date
3/3/2026
Effective date
12/11/2025
Total FMO financing
USD 30.00 MLN
Funding
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)
A