ADB increases HDBank credit limit to $125 million

Friday, Jul 02, 2021 15:37

An HDBank transaction office in HCM City. The Asian Development Bank increases the trade finance limit for HDBank from US$75 million to $125 million. — Photo courtesy of the bank

The Asian Development Bank has announced it will increase the trade finance limit for the Ho Chi Minh City Development Joint Stock Commercial Bank from US$75 million to $125 million, and the rollover loan limit from $10 million to $25 million.

HDBank joined ADB's Trade Finance Programme in 2016 as the bank to issue L/C, and over the last five years the credit limit has increased exponentially, reflecting ADB's confidence in and appreciation for HDBank in terms of its brand reputation, transparency, capital efficiency, growth, and development potential.

The increased limits will help HDBank develop trade finance activities on a wider scale and enhance its competitiveness and position in the international market.

In June last year, within the framework of the Trade Finance Programme, the two banks signed a revolving credit agreement to support trading activities in Viet Nam, especially businesses facing difficulties due to the impacts of the COVID-19 pandemic.

ADB had then granted a revolving credit limit of $10 million to HDBank, and now the increase in limit to $25 million will better support HDBank’s trade finance activities.

With the increase in the trade finance and revolving credit limits, corporate customers in Viet Nam can easily access financing from HDBank amid the difficulties caused by the pandemic.

HDBank helps ensure international trading activities are safer to provide peace of mind to parties involved in foreign trade.

It not only participates in the ADB’s TFP as an L/C issuer for Vietnamese enterprises but also as the confirmation bank for L/Cs issued by other banks guaranteed by ADB.

Early last month Moody's Investors Service changed the outlook on the long-term deposit and issuer ratings of HDBank from stable to positive, affirming its internal capacity to adapt to ensure stability and move forward based on its development strategy amid the economic woes caused by the pandemic. — VNS

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