Ho Chi Minh City-based HDBank has secured a US$215 million loan from an international consortium to support key sectors, including agriculture, rural development, and climate finance, with a focus on green initiatives.

The financing is a partnership among leading Japanese bank Sumitomo Mitsui Banking Corporation ( SMBC ), the Japan International Cooperation Agency ( Jica ), and FinDev Canada – Canada's bilateral development finance institution.

Jica, which will provide US$90 million of the total, notes that this is its first co-financing loan with FinDev Canada.The transaction is also the second project under the SMBC-Jica sustainable finance framework, which aims to improve sustainable business practices for borrowers.

Through the framework, Jica will further collaborate with SMBC to mobilize more private funds for developing countries, and contribute to the socio-economic development of developing economies, the Japanese agency says.

Funding goals

The loan will help address some of the key challenges in Vietnam, a country particularly vulnerable to climate change. According to FinDev Canada, the Southeast Asian nation faces risks like droughts, floods, and saltwater intrusion, which could reduce its GDP by up to 14.5% by 2050.

FinDev Canada will contribute U$$75 million to the loan, with at least 40% of the proceeds directed towards agricultural development, targeting retail customers and micro, small and medium-sized enterprises ( MSMEs ) along the agricultural value chains, which face challenges in accessing financing and technology.

As part of efforts to promote women's financial inclusion, the institution will direct at least 30% of the loan proceeds to MSMEs owned and led by women.

In line with Vietnam's national goals to reduce pollution and emissions, at least 30% of the proceeds will fund green projects, including renewable energy, energy efficiency, and wastewater treatment, FinDev Canada says.

Paulo Martelli, FinDev vice president and chief investment officer, says the partnership "reflects our shared ambition to support long-term development and amplify impact across the country... By leveraging our combined resources and expertise, we are helping shape a more sustainable future."

Broader context

The syndicated loan is part of a broader trend of increasing international investment in Vietnam’s sustainable development. Just days earlier, on July 29, a US$350 million five-year loan facility was signed with Hanoi-headquartered SeABank to support green energy transition and sustainable development.

The SeABank deal also involved SMBC, Jica, FinDev Canada, as well as British International Investment ( BII ) and Export Finance Australia ( EFA ). SMBC acted as coordinator and lead arranger, while BII’s contribution of US$50 million to the facility marks the UK institution's first direct debt investment in Vietnam.

Vietnam is one of the fastest-growing per-capita greenhouse gas emitters. Its energy sector, which has traditionally relied on fossil fuel, accounts for over half of the country’s total emissions, followed by agriculture, industrial processes, and waste.

To fully support the green transition of these sectors, the World Bank estimates that Vietnam would require US$368 billion, underscoring the urgency of mobilizing private capital to help the country achieve its climate targets.