IFC, LeapFrog Investments and DEG Invest in Vietnam’s HDBank to Help Accelerate Economic Recovery, Expand Lending to Smaller Businesses, and Boost Resiliency of the Banking Sector
As Vietnam accelerates economic recovery amid COVID-19, IFC, LeapFrog Investments, and DEG - Deutsche Investitions- und Entwicklungsgesellschaft have invested $165 million in convertible Tier 2 bonds issued by Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank), a leading 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.
While Vietnam's SMEs account for about 98 percent of all businesses, generate 40 percent of gross domestic product and 50 percent of employment, they have limited access to finance, hindering their growth. Further, given the economic challenges of a global pandemic over the past two years, smaller businesses in Vietnam need more working capital urgently to sustain operations and recover from COVID-19.