Affinity, HDBank sign $300m million financing deal for sustainable lending to combat climate change

Monday, Nov 01, 2021 15:26

Tran Hoai Nam, deputy general director of HDBank, and Le Hoai Anh, CEO of Affinity, sign an agreement in the presence of Prime Minister Pham Minh Chinh, HDBank permanent vice chairwoman Nguyen Thi Phuong Thao among others. — Photo courtesy of HDBank

The Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank – HoSE: HDB) and Affinity Investment Fund have signed a US$300 million financing agreement to support Vietnamese firms with programmes that meet ESG (environmental, social and governance) and sustainable development criteria.

The agreement was signed on the sidelines of the 26th United Nations Climate Change Conference of the Parties (COP26) on October 31 in the UK in the presence of Prime Minister Pham Minh Chinh, who is heading a high-level delegation to the event.

Under the agreement, the two sides will coordinate to enable HDBank to exploit ESG and climate-related funds from international organisations such as the Green Climate Fund, and the framework for Economic Co-operation and Development and the United Nations Development Programme for Sustainable Development Goals-Aligned Finance.

Affinity and HDBank will lend to businesses and projects meeting ESG criteria in Viet Nam.

They will also work with programmes that target improving knowledge of ESG and climate change with hands-on experience related to ESG and sustainability, including integrating ESG criteria into business operations and development strategies, establishing ESG governance structure and building capacity, risk management and data on ESG.

As one of the pioneers in green credit, over the years HDBank has actively contributed to promoting the nation’s economic development together with efforts to minimise impacts on the environment and combat climate change.

Since 2018 HDBank has been financing green projects.

Through its green credit programme, it not only provides customers with the best financial solutions but also targets sustainable values, promotes renewable energy, ensures national energy security, supports hi-tech agriculture, and contributes to environmental protection, thereby, promoting and contributing to the National Green Growth Strategy for 2021-30. — VNS

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