HSBC arranges first green syndicated loan for Vingroup, VinFast

HSBC has partnered with other banks to provide the first green syndicated loan worth $500 million to Vingroup and its automaker subsidiary VinFast.

HSBC is the joint sustainable finance advisor, co-underwriter, arranger, and bookrunner for the transaction. It also provides competitive finance solutions for both Vingroup and VinFast.

The financing aims to support the duo in capital expenditure, working capital and corporate purposes in compliance with Vingroup’s 2021 green loan principles and its sustainable finance framework.

In 2021, HSBC supported Vingroup to build the framework, which includes six categories of green projects and two categories of social projects across Vingroup’s business segments. The framework received positive reviews from Sustainalytics, a leading independent company that rates the sustainability of listed companies.

The transaction, according to Tim Evans, CEO of HSBC Vietnam, is a step forward in fulfilling the bank’s commitment to arrange $12 billion to support Vietnam’s green ambitions to transition to a net-zero economy.

Evans said the green syndicated loan, along with the world’s first exchangeable sustainable bonds (ESB) for Vingroup’s resort brand Vinpearl in 2021, will not only have a positive impact on the environment in Vietnam but also open up many opportunities for sustainable transactions between the two organisations.

Nguyen Viet Quang, Vice President and CEO of Vingroup, said: “The successful mobilisation of green loans once again demonstrates international banks’ trust and companionship with Vingroup’s strong and pioneering commitments to sustainable development, the most prominent of which is the desire for VinFast to become a global manufacturer of smart electric vehicles that are environmentally friendly.”

This is the first green syndicated loan and the fifth syndicated loan that HSBC has arranged for Vingroup since the establishment of their strategic bilateral partnership in 2018.

This is also HSBC’s second sustainable capital raising transaction with Vingroup within six months, after the bank participated in the issuance of $425 million ESB of Vingroup last September.

Vingroup is Vietnam's largest listed firm by market cap. Its core businesses are electric cars, real estate development (residential complexes, resorts and retail space), technology research (cloud computing, AI, big data...), education and medical care.