Maybank provides green trade finance for Vietnam’s largest offshore wind farm

Malaysia-based Maybank has funded an EPC (engineering, procurement & construction) project to construct offshore wind power farms for the Ca Mau 1 Wind Power Project in southern Vietnam.

The funding was provided to Sinohydro, a subsidiary of Power Construction Corporation of China (Powerchina).

Ca Mau 1 Wind Power Project, also called Ca Mau 1, is located in the eponymous southernmost province in Vietnam.

The 350MW project is divided into four subprojects - 1A, 1B, 1C and 1D. Upon completion, it will be the largest offshore wind power farm in Southeast Asia.

At the construction stage of 1A and 1B subprojects, Maybank provided $38.2 million for export bills discounting under Letters of Credit, the bank said in a release.

Dato’ John Chong, Maybank’s global banking CEO, said that the funding was based on recognition that cross-border trade and investments between China and Vietnam continue to intensify.

“In 2023, China was Vietnam’s top foreign direct investor and trading partner, accounting for 25% of both Vietnam’s total registered investments and trade done. Maybank is strategically positioned to facilitate these transactions with our offering and presence in China and all 10 ASEAN markets.

“We also want to be at the center of our clients’ transition journey. Maybank has launched a Transition Finance Framework, the first of its kind in ASEAN, to assist clients transitioning from brown industries to green ones. Our regional leadership in sustainability is aligned with fulfilling our mission of humanizing financial services."

Michael Foong, CEO of Maybank Vietnam, said that the bank anticipated an acceleration of FDI into renewables and other green technologies in Vietnam, driven by sustainable debt and green trade financing.

“Towards this, we have been connecting Vietnamese businesses to international investors as the country’s poised for an upgrade from frontier to emerging market status.”

Cumulatively, from 2021 to June 2024, Maybank mobilized RM83.2 billion ($19.2 billion), exceeding its 2025 target of mobilizing RM80 billion ($18.4 billion) in sustainable finance, the release said.

It noted that recently, Maybank Investment Bank (Vietnam) had acted as the exclusive financial advisor to Phuc Sinh Corporation, a leading Vietnamese spice exporter, in securing investment from the &Green Fund, a fund managed by SAIL Investments, a global sustainable investment manager headquartered in the Netherlands.

Kim Thien Quang, CEO of Maybank Investment Bank (Vietnam), said it was encouraging that despite a declining global FDI trend, a European investor believed in the potential of a Vietnamese agricultural enterprise like Phuc Sinh and has stated its intention to provide funding of up to $25 million.

“We are proud to support Phuc Sinh in this significant deal. Sustainable investment not only benefits businesses but also contributes to the sustainable development of Vietnam's economy.

“We believe this partnership will create lasting value for both parties and help drive the green capital market as also sustainable development of Vietnamese enterprises," Quang said.

Vietnam currently has no operational offshore wind power projects, although several foreign and domestic groups have shown interest in tapping this huge potential in that country that has more a coastline of 3,260 kilometers in length. Delays in the introduction of complete legal frameworks and planning have disheartened some big investors.