HSBC and Leader Energy secure funding to expand renewable energy in Việt Nam
HSBC Bank (Vietnam) Ltd. (HSBC Vietnam) and Malaysian Leader Energy Holding Berhad (Leader Energy), a wholly-owned subsidiary of HNG Capital, have signed a VND593 billion (US$23.8 million) financing deal to support the development of Leader Energy's solar projects in Việt Nam.
HSBC Bank (Vietnam) Ltd and Malaysian Leader Energy Holding Berhad (Leader Energy), a wholly-owned subsidiary of HNG Capital, have signed a VNĐ593 billion (US$23.8 million) financing deal to support the development of solar projects in Việt Nam.
This transaction marks the bank's second transaction for Leader Energy in the country, following a financing of a hydropower plant in 2017.
HSBC acted as the sole lender of the seven-year committed term loan for Leader Energy. The loan will be used to support the refinancing of Vĩnh Hảo 6 (VH6), a newly acquired 50MW solar power plant under Leader Energy.
Located in Bình Thuận province, the project moved into commercial operation in 2019, generating 100 per cent of its revenue from the sale of electricity to Electricity of Vietnam (EVN) at the Feed-in-Tariff (FiT) of 9.35 cents/kwh under 20-year Power Purchase Agreement (PPA). The project generates 83,000MWh electricity, offsetting 75,131 tonne of carbon dioxide emissions (CO2) a year.
VH6 has been fully acquired by Leader Energy since 2023. The acquisition reaffirms Leader Energy’s commitment of 500MW+ of renewable energy assets in Việt Nam.
The deal also showcases the renewable energy potential of Việt Nam given the country's conducive conditions and the Government's pledge to achieve net zero by 2050. Following this commitment made at COP26, Việt Nam aims to double down on energy transition as the sector accounts for more than half of its greenhouse gas emissions.
Furthermore, the country's natural resources offer potential to attract more investments into the growing renewable energy sector. — VNS
