Ho Chi Minh City Development Joint Stock Commercial Bank ( HDBank ) has made a pivotal move in Vietnam’s financial landscape by becoming the first private bank in the country to issue green bonds.

The milestone issuance, worth 3 trillion dong ( US$118 million ), reinforces the bank’s commitment to sustainable finance while supporting Vietnam’s transition towards a greener economy, HDBank says.

The green bonds, available in maturities of two, three, and five years, comply with international standards outlined by the International Capital Market Association ( Icma ) and the Loan Market Association ( LMA ). Strong interest from institutional investors led to full subscription, highlighting the growing demand for sustainable investment products in Southeast Asia.

Funds from the issuance will be allocated to environment-friendly projects under HDBank’s sustainable finance framework, developed with the International Finance Corporation’s ( IFC ) support. This framework earned a “very good” rating from Moody’s, which recognized its potential to foster green growth and support Vietnam’s carbon neutrality target by 2050.

HDBank says it has consistently demonstrated its commitment to environmental, social and governance ( ESG ) practices. As one of the first Vietnamese banks to adopt a formal ESG strategy, HDBank established an ESG committee to oversee sustainable initiatives.

Beyond green bonds, HDBank has earned recognition from global institutions, including the Asian Development Bank ( ADB ) and the German investment corporation DEG, for its work in climate finance and gender equality.

HDBank’s initiative comes on the heels of Techcombank’s launch of Vietnam’s first private bank green bond framework last December. Aligned with global Green Bond Principles and developed with support from the Global Green Growth Institute, Techcombank’s framework earned a "medium green" rating from S&P Global for its focus on financing eco-friendly projects and promoting Vietnam’s sustainability goals.