HSBC Vietnam grants bilateral green loan to REE Corporation

Friday, Aug 12, 2022 09:57

Representatives of HSBC and Ree signed a loan agreement. — Photo coutersy of HSBC

HSBC Bank (Vietnam) Ltd is the sole bank to arrange a green loan of VND900 billion for the Refrigeration Electrical Engineering Corporation (REE Corporation).

This loan deal will help one of the Vietnamese leading multi-sector corporations complete E-Town 6, a high-rise office building that has earned the LEED Platinum certification for its sustainable design. This is the first time HSBC has arranged a green loan to finance a real estate project for a Vietnamese corporate.

The seven-year term loan has reaffirmed HSBC’s leading position in providing sustainable financial solutions to businesses in Viet Nam.

To achieve this green financing, REE Corporation completed HSBC’s stringent credit approval and management process of sustainable funding.

The process is overseen by HSBC Asia Pacific Sustainable Loans Committee, the dedicated body of the bank with rich experience in successfully arranging green financing in different fields around the world.

The green facility must also meet the standards listed under the international Green Loan Principles, jointly issued by Loan Market Association and Asia Pacific Loan Market Association. It includes four core components: use of proceeds, project selection and evaluation, management of proceeds and reporting.

“This green loan facility reaffirms HSBC and REE’s strong, long-lasting relationship and our combined strong ambition towards contributing to Viet Nam’s transition to net zero. Together we can play our part in helping to build a better and greener Viet Nam for future generations,” said Tim Evans, CEO of HSBC Vietnam.

“We are very proud to play our part in a deal that marks another milestone for the green real estate sector in Viet Nam. This is especially important considering that construction and real estate are responsible for up to 39 per cent of all carbon emissions globally.”

In 2020, REE SE and REEPRO, two subsidiaries of REE Corporation, also successfully received the first dual green loans – worth a total of VND810 billion– from HSBC Vietnam to finance a major rooftop solar energy project.

Always ready to support clients by leveraging its global expertise and extensive local knowledge, all these transactions are contributing to HSBC Vietnam’s execution of its commitment to arrange up to US$12 billion of direct and indirect sustainable financing in Viet Nam by 2030. — VNS

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