HSBC’s first green trade facility in Vietnamese seafood industry
VOV.VN - HSBC Bank (Vietnam) Ltd. (HSBC Vietnam) and Vinh Hoan Corporation (Vinh Hoan) have entered into an agreement whereby HSBC Vietnam will provide green trade financing to Vinh Hoan.
This marks the first ever green facility that HSBC Vietnam has arranged for Vinh Hoan, whilst it is also a first for the seafood sector, demonstrating support for the Vietnamese seafood producer on their sustainability journey.
As a tropical country boasting long coastline covering over 3,000km whilst being home to more than 1,300 seafood species, the nation has plenty of advantages and potential to grow the prosperous seafood sector. The industry accounts for nearly one quarter of agriculture GDP, while the Vietnamese seafood industry is the world’s third largest exporter by turnover, as well as being the fourth largest by output.
However, Vietnamese strengths in the seafood industry might rapidly diminish, particularly as the nation has been warned that it may be one of the top five countries most adversely affected by climate change.
“Dealing with climate change and protecting our economy from its impacts, including the seafood industry, is a priority for HSBC in Vietnam,” said Ahmed Yeganeh, head of Wholesale Banking, HSBC Vietnam.
“It is central to our strategy to support corporates in Vietnam who have a clear sustainability vision and plan like Vinh Hoan. As strategic partner with a relationship spanning 24 years, HSBC is delighted and proud to be accompanying Vinh Hoan in their pursuit of a circular economy, transforming themselves and inspiring others to join the green transition,” he added.
To receive the short-term green trade loan to support their working capital for sustainable seafood production, Vinh Hoan and its subsidiaries have gone through HSBC’s stringent credit approval and management process for sustainable financing.
The green facility must also meet the high standards listed under the international Green Loan Principles, jointly issued by Loan Market Association and Asia Pacific Loan Market Association.
This meaningful first deal in the aquaculture sector indicates HSBC’s efforts in green commitment while supporting Vietnamese corporates in different industries, including real estates, renewable energy, data centre, recycled plastics, and recycled papers, in their green transition journeys.
It also underlines HSBC’s strong sustainable banking product line which can satisfy the increasingly different and sophisticated requirements from businesses.
