IFC, LeapFrog Investments, and DEG – Deutsche Investitions- und Entwicklungsgesellschaft – have invested USD165 million in convertible Tier 2 bonds issued by Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank), a Vietnamese private retail and SME bank.
While strengthening the bank’s capital base, the funding will help increase lending to retail and small and medium enterprises (SMEs), including women-owned or -led ones.
The bond raise will also help HDBank enhance its environmental and social (E&S) risk management capacity by introducing IFC Performance Standards while improving the bank’s corporate governance policies in line with international best practices, including a commitment to not fund coal-related projects.
