HSBC offers first green credit in Vietnam

10-Jul-2020 Intellasia | The Saigon Times | 6:02 AM Print This Post

On July 8, HSBC Vietnam signed a green credit agreement with Duy Tan Plastics Corporation to finance the Duy Tan Plastics Recycling Factory, making it the first green loan the bank has arranged for a Vietnamese firm.

The first phase of Duy Tan’s factory project located in Long An Province will require a total investment of $63 million. It is expected to recycle used plastics bottles into plastic raw materials for the further production of plastic bottles.

Le Anh, head of Marketing of Duy Tan, said the factory is scheduled to launch the products in the local market in the fourth quarter of the year.

Plastic grains produced from the used plastic bottles will secure certification from the US Food and Drug Administration, he added.

Addressing the signing ceremony, Tran Thi Nguyet Oanh, director of Corporate Banking in the south at HSBC Vietnam, stressed that the interest rate of the green credit is equivalent to that of ordinary loans. However, green credit in the profile will help broaden Duy Tan’s access to the international capital market in the future.

Apart from HSBC’s green financing, Duy Tan will also get expert consultancy in green finance, sustainable development and green project governance.

Oanh said that as of July, HSBC had disbursed some $52 billion of the total $100 billion in green credit set aside for sustainable finance and investment by 2025.

https://english.thesaigontimes.vn/77518/hsbc-offers-first-green-credit-in-vietnam.html

 


Category: Finance, Vietnam

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