Canada’s bilateral Development Finance Institution, FinDev Canada, Sumitomo Mitsui Banking Corporation (SMBC), and Japan International Cooperation Agency (JICA) announce the signing of a USD 215 million syndicated loan facility to Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank), one of the leading commercial banks in Vietnam.
The loan facility will enable HDBank to strengthen agricultural value chains, rural development, and climate finance with a focus on green projects. It will also support the expansion of micro, small and medium-sized enterprises (MSMEs), particularly women-owned and led MSMEs, while providing social housing loans to low-income customers.
FinDev Canada will contribute USD 75 million as part of the loan facility, with at least 40% of the proceeds directed towards agricultural development, targeting retail customers and MSMEs along the agricultural value chains, which face challenges in accessing financing and technology.
Additionally, to improve women’s financial inclusion, FinDev Canada will direct at least 30% of the loan proceeds to 2X aligned women owned and led MSMEs, thereby enhancing women’s economic participation and empowerment across the bank’s portfolio.
Vietnam is particularly vulnerable to climate change as it faces risks such as droughts, floods and saltwater intrusion that could reduce GDP by 12% to 14.5% by 2050. In line with its national goals to reduce rural pollution and greenhouse gas emissions by 2030, FinDev Canada will direct at least 30% of the loan proceeds to climate finance projects, which include renewable energy, energy efficiency and wastewater treatment.
“FinDev Canada is pleased to partner with HDBank, SMBC and JICA on this landmark facility – one of our first direct investments in Vietnam. This partnership reflects our shared ambition to support long-term development and amplify impact across the country. We recognize the critical role the financial industry plays in advancing economic growth, gender equality and climate action. By leveraging our combined resources and expertise, we are helping shape a more sustainable future,” said Paulo Martelli, VP and Chief Investment Officer, FinDev Canada.
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