HSBC facilitates five-year green club loan for Gamuda Land

HSBC Vietnam, in collaboration with Mizuho Bank, Sumitomo Mitsui Banking Corporation (SMBC) and UOB Vietnam, has announced to provide a five-year green club loan for Tam Luc Real Estate Corporation, a unit of Malaysian property developer Gamuda Land.

HSBC Vietnam was the coordinating arranger, joint mandated lead arranger, joint green coordinator, and facility agent in this deal.

With a commitment of VND3,750 billion (over $144.4 million), the loan will finance the investment and development of Eaton Park, a high-end residential project in Ho Chi Minh City.

This project has received Excellence in Design for Greater Efficiencies (EDGE) green building certification by the International Finance Corporation (IFC), which requires Eaton Park to achieve a minimum of 20% savings across energy, water and embodied energy in materials, HSBC Vietnam noted in a Monday release.

"The Eaton Park project also aligns with the international Green Loan Principles. It reflects Tam Luc’s commitment to incorporate sustainability into their real estate development," it added.

Tim Evans, CEO and head of Banking at HSBC Vietnam, commented: "The transaction demonstrates HSBC’s ability to structure sophisticated financial solutions like a green club loan tailored to support sustainable development."

Previously, HSBC Vietnam arranged a $40 million unsecured loan for Gelex Infrastructure, under Hanoi-headquartered industrial company Gelex Group.

In a March 25 announcement, Gelex Group said the loan has a term of five years and is provided with a comprehensive financial guarantee of up to 80% by Italian financial insurance company SACE.

HSBC has been in Vietnam for over 150 years. It was the first foreign bank to launch a locally incorporated entity on January 1, 2009 as HSBC Bank (Vietnam) Ltd.

The bank’s current network includes two branches and four transaction offices in Ho Chi Minh City; one branch and four transaction offices in Hanoi; and one full-service branch in Danang.

Gamuda Land is the real estate development arm of Gamuda Berhad - a construction and infrastructure development group from Malaysia.

The giant is the developer of many projects in Vietnam such as Gamuda City, a 274-hectare development in Hanoi's Hoang Mai district; Celadon City, an 82-hectare project in HCMC's Tan Phu district; Eaton Park in HCMC's Thu Duc city; The Meadow in HCMC; and Artisan Park in Binh Duong province. Ongoing projects in Dong Nai and Hai Phong are expected to become new highlights.

Eaton Park is developed by Tam Luc Real Estate Corporation, a project company of Gamuda Land. The project is a mixed-use development strategically located in District 2 of HCMC, and spans over 3.75 hectares with six high-rise apartment towers totaling 2,000+ units.