The Hongkong and Shanghai Banking Corporation (HSBC), the Italian Export Credit Agency (SACE), and the Nutifood Nutrition Food Joint Stock Company (Nutifood) have completed arranging a $31-million five-year untied offshore “Push” facility, supporting Nutifood’s capex and working capital, including investments in new warehousing and the replacement of four existing filling lines for dairy manufacturing.

SACE is providing a guarantee covering 80 per cent of the loan. This is the first SACE Push facility concluded in either ASEAN or Vietnam and also in the food industry, highlighting the strategic ongoing cooperation between HSBC and SACE in closing transactions in priority markets.

The facility offers Nutifood access to long-term hard currency financing, supporting its growth and investments in the local and international milk market. HSBC acted as Sole Mandated Lead Arranger, Lender, and Agent.

The Push program, which was launched in 2017, is a SACE initiative. With the aim of boosting bilateral trade between Vietnam and Italy, SACE proactively seeks and links buyers and suppliers in the two countries. Through the program, the export credit agency (ECA) can provide a guarantee for financing of up to 12 years for foreign corporates, with no limits regarding the nature of the goods and no requirement for available contracts between buyers (borrowers) and Italian suppliers.

In joining the Push program, buyers’ access to funding is easier thanks to SACE’s financial guarantee, and they can also enjoy its economic incentives once the target amount of procurement from Italy is reached within an agreed period from the signing of the facility, as well as join SACE’s match-making events twice a year, increasing the opportunities to find suitable business partners.

“This landmark transaction between Nutifood and SACE, the first of its kind in ASEAN and Vietnam and the second in Asia, is testament to HSBC’s industry-leading capabilities in facilitating major transactions for our clients,” said Mr. Stephanie Betant, Head of Wholesale Banking at HSBC Vietnam. “It also underscores our ability to connect Vietnamese corporates with international experts leveraging our global network, and to support Vietnam’s growth. We are particularly thrilled to find innovative sources of financing for our customers and identifying optimal methods to access funding. We expect this historic transaction to increase bilateral trade between Italy and Vietnam.”

Key to this transaction is the agreement with Nutifood to foster its commercial relationships with Italian companies to increase its procurement from the country in the years to come. Being the ultimate target of a Push facility, Italian small and medium-sized enterprises (SMEs) will benefit from bid invitations and B2B meetings and match-making events organized by SACE.

Since the inception of the Push program in 2017, HSBC has arranged eight facilities and together with SACE is currently evaluating new opportunities in Southeast Asia across several sectors, such as Agribusiness, Power, Petrochemicals, and Furniture Manufacturing, for an overall amount of around $800 million.

HSBC is the only bank in Vietnam to successfully arrange ECA-supported deals for private Vietnamese companies on a stand-alone basis. The triparty transaction between HSBC, SACE, and Nutifood is the second ECA deal HSBC has arranged for a private company, following the first, for VinFast - Euler Hermes Covered Loan, in 2018.