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HSBC arranges VND900 billion bilateral green loan to REE Corporation

The Saigon Times

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HCMC – HSBC Vietnam on August 9 signed a deal to arrange a green loan of VND900 billion for the Refrigeration Electrical Engineering Corporation (REE Corporation) to help the latter complete E-Town 6, a high-rise office building that has earned the LEED Platinum certification for its sustainable design.

This is the first time HSBC has arranged a green loan for a Vietnamese firm to finance a real estate project.

To achieve this seven-year loan, REE Corporation, a Vietnamese leading multi-sector corporation, completed HSBC’s stringent credit approval and management process for sustainable financing.

The process was overseen by the HSBC Asia Pacific Sustainable Loans Committee, a dedicated body of the bank with rich experience in successfully arranging green financing in different fields around the world.

The green facility must also meet the high standards listed under the international Green Loan Principles, jointly issued by the Loan Market Association and the Asia Pacific Loan Market Association. It includes four core components: the use of proceeds, project selection and evaluation, management of proceeds and reporting.

“This green loan facility reaffirms HSBC and REE’s strong, long-lasting relationship and our combined strong ambition to contribute toward Vietnam’s transition to net zero. Together, we can play our part in helping to build a better and greener Vietnam for future generations,” said Tim Evans, CEO of HSBC Vietnam.

“We are very proud to play our part in a deal that marks another milestone for the green real estate sector in Vietnam. This is especially important when one considers that construction and real estate are responsible for up to 39% of all carbon emissions globally,” he added.

Huynh Thanh Hai, CEO of REE Corporation, shared, “The green loan for the E-Town 6 project aims to illustrate our contribution to developing green business activities, thereby contributing to the development of green and cleaner products in Vietnam.”

In 2020, REE SE and REEPRO, two subsidiaries of REE Corporation, also successfully received the first dual green loans, worth a total of VND810 billion, from HSBC Vietnam to finance a major rooftop solar energy project.

Always ready to support clients by leveraging its global expertise and extensive local knowledge, all these transactions contribute to HSBC Vietnam’s execution of its commitment to arrange up to US$12 billion of direct and indirect sustainable financing in Vietnam by 2030.

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