Vietnam’s Ho Chi Minh City Development Commercial Bank ( HDBank ) has completed its inaugural US$100 million international green bond issuance, marking a critical phase in Vietnam’s transition to sustainable finance.

The second tranche valued at US$50 million, was taken up by British International Investment ( BII ) and the Dutch Entrepreneurial Development Bank ( FMO ), following a US$50 million initial tranche led by the International Finance Corporation ( IFC ).

This structured two-phase issuance places HDBank among the first Vietnamese commercial banks to successfully tap international capital markets for green finance under the country’s new regulatory framework. The bonds, which are non-convertible, unsecured and carry a three-year tenor, provide crucial long-term funding aligned with Vietnam’s net-zero 2050 goals.

Financially, the green bond programme offers multiple strategic advantages. It diversifies HDBank’s funding base with foreign institutional capital, reduces currency concentration risk and supports the bank’s sustainable lending roadmap.

The IFC, a member of the World Bank Group, played a catalytic role, subscribing to the first tranche and enabling the participation of the FMO and BII in the follow-up issue.

“This green bond issuance is not only a funding tool, but a market-making mechanism,” says Srini Nagarajan, the BII’s head of Asia. “Together with the IFC and FMO, we are signalling to the global market that Vietnam’s green finance ecosystem is investable, credible and ready to scale.”

The proceeds will finance vetted projects across solar energy, green buildings, electric mobility and energy efficiency, with estimated carbon emission reductions of 102,000 tonnes over 10 years.

All projects must meet stringent environmental and social screening in line with HDBank’s sustainable finance framework, which was shaped with input from the IFC’s technical advisory team.

Highlighting the deal’s broader purpose, Nguyen Huu Dang, the bank’s CEO, adds: “Sustainable development sits at the core of our long-term strategy. This international green bond initiative reinforces HDBank’s commitment to financing solutions that create lasting value for our customers, investors and Vietnam’s low-carbon future.”