HSBC Vietnam on October 27 announced the successful arrangement of a $105 million international syndicated green loan for the EVNNPC. This funding is intended for the investment in Battery Energy Storage Systems (BESS) at 70 existing 110 kV substations in the country's northern region.
According to HSBC Vietnam, this is EVNNPC's first international syndicated loan in USD. The funds will be used to install BESS at substations, contributing to the stability and reliability of the power grid, meeting increasing load demands, and reducing the risk of grid overload and failures.
In this transaction, HSBC acted as the sole lead arranger, bookrunner, and underwriter, as well as the green transaction coordinator and facility agent. With a total term of 8 years from the first disbursement to the final maturity, the loan is among the long-term transactions in Vietnam's international syndicated loan market, where precedents for similar transactions remain limited.
The loan attracted significant interest, with registrations exceeding the initial offering size, drawing 15 lenders from China, South Korea, Taiwan (China), and Thailand. According to HSBC, this outcome reflects the international financial institutions' interest in EVNNPC and energy storage projects in Vietnam.
The BESS program is expected to be implemented at 70 existing substations, aiming to enhance the flexible operation of the power grid amid increasing electricity demand. The project is also anticipated to contribute to the development of power sources and grids as per the adjusted Power Development Plan VIII, as well as the national energy storage system development goals.
The first international syndicated loan in USD for EVNNPC combines green finance solutions with investments in energy storage infrastructure.
"The transaction enhances the resilience of the power grid, supporting Vietnam in developing a more flexible and sustainable electricity system. The participation of 15 international lenders also demonstrates market confidence in EVNNPC and this investment program," Mr. Tim Evans stated.
According to HSBC, this transaction continues the cooperation between the bank and EVNNPC following several long-term bilateral loans within the country. Raising funds from the international market also provides EVNNPC with opportunities to diversify financial resources for power infrastructure investment.
To ensure the loan meets the Green Loan Principles, HSBC collaborated with EVNNPC to structure the loan by linking the funding with the environmental benefits of the BESS program.
The transaction aligns with the State Bank of Vietnam's direction to encourage syndicated loans for large-scale projects, while also opening additional channels for international capital mobilization for energy infrastructure projects in Vietnam.
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