HSBC provides $23m loan for Malaysia-based Leader Energy's Vietnam solar project
Summary
HSBC Vietnam and Malaysia-based Leader Energy Holding Berhad, a wholly-owned subsidiary of HNG Capital, have signed a 593 billion dong ($23.3 million) financing to support the development of Leader Energys solar projects in Vietnam, according to an announcement.The transactiona seven-year committed term loanmarks HSBCs second deal with Leader Energy for a Vietnamese project, following the financing of a hydropower plant in 2017.The loan will be used to support the refinancing of Vinh Hao 6 (VH6), a 50 MW solar power plant. VH6 was fully acquired in 2023 by Leader Energy, which has committed to over 500 MW of renewable energy assets in Vietnam.Contributing to the energy transition is a key component of Leader Energys strategy to mitigate climate change and promote sustainable development. The group is expanding its renewable energy portfolio to fulfil its commitment to achieving net zero greenhouse gas emissions by 2050, said Jenny Ng, Group Chief Financial Officer, Leader Energy.The renewable energy sector in Vietnam has witnessed significant developments recently. B Grimm Group of Thailand operates one of the regions biggest solar farms here, while the top US panel producer by market capitalisation, First Solar, owns a massive factory in Ho Chi Minh City, according to a Nikkei Asia report.In 2023, Dutch development bank FMO proposed to invest $8.2 million in the latest equity round of Indefol Solar, a Vietnam-based company that develops, constructs and operates a portfolio of 179-megawatt-peak (Mwp) solar power projects with commercial and industrial clients.Meanwhile, Chinese solar panel maker Trina Solar is planning to invest an additional $420 million in Vietnams northern province of Thai Nguyen, raising its total investment in the country to nearly $900 million.