HSBC Bank (Vietnam) Ltd. (HSBC Vietnam) and Malaysia-based Leader Energy Holding Berhad (Leader Energy), a wholly owned subsidiary of HNG Capital, have signed a 593 billion Vietnamese Dong ($23.32 million) financing to support the development of Leader Energy’s solar projects in Vietnam.

This transaction marks the bank’s second transaction for Leader Energy in the country, following a financing of a hydropower plant in 2017, HSBC said in a statement on Monday.

According to the statement, 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 Vinh Hao 6 (VH6), a newly acquired 50 megawatt (MW) solar power plant under Leader Energy.

Located in Binh Thuan province, the project entered into commercial operation since 2019, generating 100 percent of its revenue from the sale of electricity to Electricity of
Vietnam (EVN) at the Feed-in-Tariff (FiT) of 9.35 cents/kilowatt hour (kwh) under 20-year power purchase agreement (PPA).

The project generates 83,000 megawatt hour (MWh) electricity thereby offsetting 75,131 tons 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 Vietnam.

The deal also showcases the renewable energy potential of Vietnam given the country’s conducive conditions and its government’s pledge to achieve net zero by 2050.

Following this commitment made at COP26, Vietnam 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.

“The refinancing arrangement, secured through HSBC Vietnam with close collaboration with HSBC Malaysia has offered more favorable term,” said Jenny Ng, Group Chief Financial Officer, Leader Energy.

According to her, this strategic financial decision demonstrates the firm’s solid financial footing, commitment in maintaining a strong financial foundation and its focus on sustainable growth,

“The confidence shown by our financial partners is a testament to the robustness of our financial management, the underlying asset and our ability to deliver,” she says.

She also notes that contributing to the energy transition is a key component of Leader Energy’s strategy to mitigate climate change and promote sustainable development.

She says the group is expanding its renewable energy portfolio to fulfil its commitment to achieving net zero greenhouse gas emissions by 2050.

Ahmed Yeganeh, Country Head of Wholesale Banking of HSBC Vietnam, said the bank has supported Leader Energy’s growth and expansion, including their transition towards the renewable energy sector in multiple countries in ASEAN and in Taiwan.

“This deal demonstrates how the financial sector can play an active role in unlocking the renewable energy potential for Vietnam while supporting the sustainable growth ambition of businesses,” he added.

According to the statement, the success of this transaction highlights HSBC’s strong ASEAN connectivity, offering a seamless banking experience through a close collaboration between HSBC Vietnam and HSBC Malaysia.

Leader Energy together with its subsidiaries and jointly controlled entities is an independent power producer primarily engaged in the development, ownership, operation and maintenance of power assets and projects.

The firm has diverse portfolio in power assets and projects in addition to its geographical footprint in seven countries across Southeast Asia and Taiwan.

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