HSBC Vietnam Cooperates with Trungnam Group in Renewable Energy Projects in Vietnam

Today HSBC Bank (Vietnam) Ltd. (HSBC Vietnam) is signing a Letter of Intent (LoI) for evaluating and providing financing solutions with a focus on sustainability with Trung Nam Construction Investment Corp. (Trungnam Group), one of the largest and most high- profile renewable energy players in Vietnam. The signing ceremony is witnessed by Mr. Alok Sharma, COP26 President, on the occasion of his visit to Vietnam and Mr. Gareth Ward, British Ambassador to Vietnam.

The LoI marks another step in HSBC Vietnam’s execution journey of the commitment to arranging up to USD12 billion of direct and indirect sustainable financing for Vietnam and the corporate sector in Vietnam by 2030.

With Vietnam’s strong commitment at the COP26 last November to reach net zero by 2050, the development and investment in renewable energy projects is of strategic national importance.

According to the LoI, HSBC will partner with Trungnam Group to evaluate and provide sustainable financing solutions for the development of Trungnam Group’s renewable energy projects across Vietnam. The Bank will leverage on its global investment banking franchise, its longstanding presence in and understanding of Vietnam, its track record and expertise in sustainable finance, as well as its deep understanding of various investor pools to devise a suitable financing strategy for Trungnam Group.

The support includes the bank’s consultation and technical support so the Group can access capital markets in Vietnam and internationally with a focus on sustainability.

Mr. Alok Sharma, COP26 President, shared: “The increased mobilisation of private sector financing for green projects was a major success of November’s COP26 summit. Today’s agreement between HSBC and Trungnam Group unlocks US$12 billion of sustainable financing for Vietnam, showing the vital role that the private sector can play in enabling the green transition. I urge Vietnam to take full advantage of international green financing, in order to realise the ambitious net zero and clean energy pledges made by PM Chinh in Glasgow.”

Tim Evans, CEO of HSBC Vietnam, said, “The need to take action to address climate change is critical. The time is now. We are therefore looking to immediately implement the undertaking we made last month to actively support Vietnam’s commitments made following COP26. We are looking to work together with the Vietnamese Government and people in realising their clear ambitions to tackle climate change through both green finance and technology transfer.”

“We are privileged to work together with Vietnamese corporates to combat climate change. As one of the largest companies in the renewable energy sector in Vietnam, Trungnam Group and HSBC have a shared ambition to help build a greener Vietnam. The signing ceremony today reaffirms the importance of collectively addressing climate change and shows that through collaboration we can all make a material difference to Vietnam both today and for future generations”. Tim added.

According to Mr. Nguyen Tam Thinh, Trungnam Group’s Chairman: “We are honoured to cooperate with HSBC, one of the world’s most prominent financial institutions with a history spanning more than 150 years. The collaboration between the world's leading financial institution and Vietnam’s leading Renewable Energy company will generate critical financial solutions, assisting the Company’s future growth of strategic projects. Trungnam Group will increase its ownership capacity in Renewable Energy to 3.8GW and 1.5GW of LNG Power by 2025, while also fulfilling the Government of Vietnam’s commitment at COP26.”

According to the World Bank, Vietnam is one of the top five countries likely to be affected by climate change, which will reduce the country’s national income by up to 3.5% by 2050. The COP26 last November in Glasgow was considered the world’s best last chance for climate action.

Following up on Vietnam’s commitment at COP26, HSBC Vietnam made a commitment to arranging up to US$12 billion to green the country by 2030. The bank will mobilise funds from local and international financial markets to provide a wide range of sustainable solutions in green finance, debt finance, supply chain, trade, green deposits and investment products. HSBC incorporates prudent risk assessment and international green finance standards in providing these solutions.