FMO Invests in HDBank Green Bond Programme to Advance Climate Finance in Vietnam

FMO Invests in HDBank Green Bond Programme to Advance Climate Finance in Vietnam

(IN BRIEF) FMO has invested US$30 million in the second tranche of HDBank’s international green bond programme, joining British International Investment in a US$50 million placement that follows IFC’s fully subscribed inaugural tranche. The programme supports climate-aligned projects across renewable energy, energy efficiency and sustainable infrastructure under HDBank’s Sustainable Finance Framework, with an expected emissions reduction of around 102,000 tonnes of CO₂ over ten years. Backed by a strong international partnership, the transaction reinforces Vietnam’s sustainable finance ecosystem and contributes to the country’s Net Zero 2050 ambitions.

(PRESS RELEASE) THE HAGUE, 13-Jan-2026 — /EuropaWire/ — FMO has confirmed its participation in Ho Chi Minh City Development Commercial Bank’s international green bond programme by committing US$30 million to the second tranche of the issuance. The investment forms part of HDBank’s broader US$100 million green bond programme and is being made alongside British International Investment, further strengthening international support for climate-focused finance in Vietnam.

The second tranche totals US$50 million and was placed privately with two development finance institutions, with FMO contributing US$30 million and British International Investment investing US$20 million. This follows the successful placement of the inaugural US$50 million tranche, which was fully subscribed by the International Finance Corporation. IFC played a central role in structuring the programme and attracting additional investors, helping to scale international participation in Vietnam’s sustainable finance market.

Through this collaboration, HDBank, IFC, FMO and BII aim to channel global capital toward projects that align with Vietnam’s climate and sustainability priorities. Funds raised under HDBank’s Sustainable Finance Framework will be allocated to eligible green activities, including solar power generation, energy efficiency improvements, environmentally certified buildings, electric vehicles and energy-saving technologies. The portfolio supported by the programme is expected to reduce approximately 102,000 tonnes of carbon dioxide emissions over a ten-year period, contributing to Vietnam’s Net Zero 2050 objectives.

According to the company’s press release, FMO views the investment as the start of a long-term partnership with HDBank, supporting inclusive growth while expanding climate finance solutions in emerging markets. HDBank highlighted that sustainability is a core pillar of its strategy and described the international green bond programme as an important milestone in advancing its environmental and social goals.

IFC emphasised that the issuance represents a significant step in expanding HDBank’s climate finance activities, with the capital raised expected to support sustainable industries, job creation and community development across Vietnam. British International Investment also underlined Vietnam’s importance as a priority market in Southeast Asia’s green transition, noting that the transaction sends a strong signal about the maturity and potential of the country’s sustainable finance ecosystem.

The second tranche carries a three-year maturity and is issued as a non-convertible, unsecured instrument without warrants. All proceeds are ring-fenced for projects that meet strict environmental and social standards under HDBank’s framework. The transaction was formally announced during the US$100 Million Green Bond Issuance Disclosure Ceremony in Ho Chi Minh City, attended by representatives from HDBank, IFC, FMO, BII and officials from the Netherlands and the United Kingdom.

About IFC

IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2025, IFC committed a record $71.7 billion to private companies and financial institutions in developing countries, leveraging private sector solutions and mobilizing private capital to create a world free of poverty on a livable planet. For more information, visit www.ifc.org.

About BII

British International Investment plc is the UK’s development finance institution and impact investor. The organisation invests in businesses in developing countries to improve people’s lives and help protect the planet. BII’s work targets the underlying causes of poverty and the climate crisis, helping countries break free from aid dependency for good.

Media Contacts:

Monica Beek
+31 6 46637868
M.Beek@fmo.nl

Paul Helsloot
+31 6 18 47 96 55
P.Helsloot@fmo.nl

SOURCE: FMO