Want to borrow 400 million USD, Vingroup and VinFast get a green syndicated loan of 500 million USD
HSBC said it is working with a number of other banks to provide the first green syndicated loan for JSC Vingroup and the VinFast Manufacturing and Trading Joint Stock Company – a member company of the Vingroup in automobile manufacturing. Green loans totaling 500 million USD.
HSBC acted as Co-Consultant and Co-Guarante, Arrangement and Set-up for this transaction, arranging and providing competitive financing for Vingroup and VinFast.
“The transaction received high market interest, helping to increase the size of the loan from an initial $400 million to $500 million.“, said HSBC.
The credit is intended to assist Vingroup and its affiliates with capital expenditures, working capital and general corporate objectives in accordance with the 2021 Green Credit Principles and Vingroup’s Sustainable Finance Framework. In 2021, HSBC supported Vingroup in developing this Framework, including six green project items and two social project items belonging to the Group’s business segments.
The Sustainable Finance Framework also received positive reviews from Sustainalytics, a company that independently assesses the sustainability of listed companies. Potential project categories include clean transportation, green buildings, sustainable water and wastewater management, pollution prevention and control, energy efficiency, renewable energy, and access to essential services – health care and affordable housing.
Tim Evans, General Director of HSBC Vietnam, shared:This transaction is another step in fulfilling our commitment to set up up to $12 billion to support Vietnam’s green goals in its transition to a clean zero emission economy.”
“Since Vingroup and HSBC share a common goal of contributing to Vietnam’s sustainable development, I believe this green syndicated loan, coupled with the sustainable bond transaction, has the world’s first equity option. Vinpearl in 2021, will not only have a positive impact on the environment in Vietnam, but also open up many opportunities for sustainable transactions between the two organizations.”
Nguyen Viet Quang, Vice Chairman and CEO of Vingroup, said:The successful mobilization of green syndicated loans once again demonstrates the trust and friendship of international banks with Vingroup’s strong commitment and pioneers for sustainable development, the most prominent of which are: the aspiration to turn VinFast into a global smart electric vehicle manufacturer, creating environmentally friendly means of transportation.”
This is the fifth syndicated loan transaction that HSBC has made for Vingroup since establishing a strategic partnership between the two parties in 2018, and is also the second continuous capital-raising transaction with the Group in the past year. the issue of $425 million of Vingroup’s share option bonds in September last year.
By Business and Marketing
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