SHB continues to position itself as an effective conduit for channelling international green capital into Việt Nam. — Photo courtesy of SHB

HÀ NỘI — In 2025, Saigon–Hanoi Commercial Joint Stock Bank’s (SHB) successfully arranged two Environmental, Social and Governance (ESG)-compliant medium-term syndicated loans denominated in US dollars, with a combined value of US$600 million.

Both transactions attracted strong interest from international lenders, with total commitments exceeding the initial target. This enabled SHB to exercise the greenshoe option, optimising its funding structure and meeting growing demand for financing green and sustainable projects.

The new funding provides SHB with greater capacity to support enterprises and projects aligned with green growth and sustainable development priorities.

The two transactions drew participation from 26 international financial institutions, underscoring SHB’s growing appeal and credibility among global investors and lenders. This also reflects a broader shift in global capital flows towards ESG-aligned transactions in Việt Nam.

Notably, the 2025 ESG syndicated loan was jointly arranged and underwritten by five Mandated Lead Arrangers and Bookrunners (MLABs): Sumitomo Mitsui Banking Corporation (SMBC), CTBC Bank, First Abu Dhabi Bank (FAB), Mashreq Bank and the State Bank of India (SBI) – all well-established international financial institutions. Their role as joint arrangers and underwriters highlights strong confidence in the transaction’s attractiveness, SHB’s execution capabilities, and its ability to mobilise broad participation from the international investment community.

The success of the syndicated loans also followed a series of well-structured and professionally organised investor roadshows conducted by SHB in Taiwan (China) and Singapore. These engagements helped strengthen relationships with existing investors while expanding SHB’s network of potential international partners.

Under its commitment, 100 per cent of the loan proceeds will be allocated to financing ESG-compliant projects that meet the criteria outlined in SHB’s Sustainable Finance Framework. The framework aligns closely with widely recognised international standards and principles for green and sustainable finance, including those of ICMA, LMA and IFC, as well as equivalent global practices.

Standardising the Sustainable Finance Framework enhances consistency in project selection, strengthens portfolio management, and improves SHB’s ability to access sustainable capital flows from international markets.

As international financial institutions increasingly prioritise capital allocation for sustainability objectives, ESG-compliant syndicated loans continue to emerge as a dominant trend in global capital markets. For SHB, the successful mobilisation of ESG syndicated financing extends beyond the funding scale, affirming the bank’s capability to standardise criteria, enhance transparency, and strengthen execution quality. These factors provide a solid foundation for expanding cooperation, diversifying the investor base and structuring future transactions to meet SHB’s evolving funding needs.

ESG leadership and long-term vision

Remaining steadfast in its sustainable development strategy, SHB continues to position itself as an effective conduit for channelling international green capital into Việt Nam. The bank works closely with enterprises on their green transition, helping improve resource efficiency and promote sustainable growth, thereby making tangible contributions to Việt Nam’s sustainable development goals and those of the international community.

Over the years, SHB has partnered successfully with leading global financial institutions such as the World Bank (WB), Asian Development Bank (ADB) and International Finance Corporation (IFC), directing capital towards green projects and diverse economic segments, including renewable energy, small and medium-sized enterprises, and women-led businesses.

SHB has also been recognised among the Top 10 enterprises for comprehensive ESG implementation, reflecting its consistent efforts in embedding sustainability across its operations.

SHB aims to become a leading modern retail bank, a green bank and a digital bank in the region by 2035. Throughout this journey, the bank places people and corporate culture at the core of its transformation strategy, leverages science, technology and innovation as key growth drivers, and remains firmly committed to the goal of green banking and sustainable development. — VNS