Location:
Vietnam
Investor:
HSBC
Investment:
Rooftop Solar Power facilities, and Green Building.
Investment Size:
VND660 billion seven-year bilateral green term loan, and VND900 billion bilateral green loan.
Impact:
Creating 65 rooftop solar power facilities atop Vietnamese factories capable of generating 1 megawatt (MW) of green energy each. And creating a building meeting the highest LEED Platinum standards for energy efficiency.
Refrigeration Electrical Engineering Corporation (REE Corporation), a prominent infrastructure developer in Vietnam utilized Green Loans to facilitate and realize their ambitious projects.
In 2020, REE Corporation sought to expand into the renewable energy sector by initiating a substantial solar project involving the installation of 65 rooftop solar power facilities atop Vietnamese factories, each capable of generating 1 megawatt (MW) of green, zero-carbon electricity.
This initiative aimed to support local industrial companies in transitioning to renewable energy sources and contribute to Vietnam's broader energy transition.
To finance this project, HSBC extended a VND660 billion, seven-year bilateral green term loan to REE Corporation's new solar energy subsidiary. The CEO of REE Corporation emphasized the economic attractiveness of the project, highlighting its potential to foster energy savings for commercial and industrial sectors, improve the environment, and mitigate the impact of climate change.
Undeterred, REE Corporation continued their sustainable endeavours in 2022 by securing another Green Loan from HSBC, of VND900 billion, this time to fund the construction of a green building in Ho Chi Minh City. Designed to meet the highest LEED Platinum standards for energy efficiency, this project marked HSBC's inaugural Green Loan for a real estate venture in Vietnam.
This strategic collaboration aligns with HSBC's commitment to allocate up to US$1 trillion in funding and investments toward sustainability initiatives over the next decade. Specifically, in Vietnam, HSBC has pledged to facilitate up to US$12 billion in sustainable financing for the country and its corporate sector by 2030.
Read more about this case on the HSBC website.
