Proparco, the private sector financing branch of Agence Française de Developpement (AFD), has granted a US$50 million loan to HDBank to finance green projects and promote sustainable development in Vietnam.
It marks the first collaboration between Proparco and HDBank.
A pioneer in green lending, HDBank has in past years helped foster Vietnam's economic development while minimising the impacts on the environment.
The loan will help the bank get closer to international standards in green credit.
All projects funded by HDBank satisfy green criteria such as reducing energy consumption, reducing CO2 emissions, reducing pollution, and targeting sustainable growth.
Green projects promise to create more than 1,350 direct and indirect jobs.
They will contribute to achieving the United Nations’ Sustainable Development Goals.
Based on their common views on sustainable development, creating long-term values for the economy and community and society, the two sides promised to have more strategic cooperation in future.
Since 2018, HDBank has been financing green projects to support high-tech agriculture and renewable energy.
As of August 31 this year, its outstanding loans to green projects were worth nearly VND13.5 trillion (US$593.2 million).
Through its green credit programme, the lender not only provides customers with the best financial solutions but also targets sustainable values, promotes renewable energy, ensures the national energy security, supports hi-tech agriculture, and contributes to environmental protection.
HDBank was the first member of the Asian Development Bank (ADB) to receive the Green Deal Award, a recognition for its notable achievements in green finance while participating in the ADB Trade Finance Programme.
It was also voted by readers of Vietnam Economic Times as the Best Bank for Green Credit Financing in 2019.