HSBC lends Leader Energy to develop renewable energy in Vietnam

This marks the bank's second transaction with Leader Energy in the country after financing a hydropower plant in 2017.

The six-year loan will be used to support the refinancing of Vinh Hao 6 (VH6), a newly acquired 50MW solar power plant under Leader Energy in the southern province of Binh Thuan.

VH6 has been fully acquired by Leader Energy since 2023. The acquisition serves to reaffirm Leader Energy’s commitment of 500MW+ of renewable energy assets in the country.

The deal also showcases the renewable energy potential that exists locally, particularly given the country's conducive conditions and its Government's pledge to achieve net zero by 2050.

Jenny Ng, group chief financial officer of Leader Energy, said, “We are pleased with the successful refinancing of our Vinh Hao 6 in Binh Thuan province. The refinaning arrangement, secured through HSBC Vietnam with close collaboration with HSBC Malaysia, has offered more favourable term.

This strategic financial decision demonstrates our solid financial footing, commitment in maintaining a strong financial foundation and our 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.”

“Contributing to the energy transition is a key component of Leader Energy’s strategy to mitigate climate change and promote sustainable development. The group is expanding its renewable energy portfolio to fulfil its commitment to achieving net zero greenhouse gas emissions by 2050,” he added.

Meanwhile, Ahmed Yeganeh, country head of Wholesale Banking of HSBC Vietnam, emphasised that, "We are proud to continue supporting Leader Energy in its efforts to decarbonise Vietnam's energy sector. Our relationship with Leader Energy spans over 45 years and we have supported their 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 noted.