Maybank extends green trade finance for Ca Mau 1 Wind Power Project
Maybank extends green trade finance for Ca Mau 1 Wind Power Project
Maybank has extended financing to Sinohydro, a subsidiary of Power Construction Corporation of China (POWERCHINA), for an EPC project to construct offshore wind power farms of the Ca Mau 1 wind power project in the southern province of Ca Mau.
Ca Mau 1 is the largest offshore wind farm in Vietnam and ASEAN. The total installed capacity of Ca Mau 1 is expected to be 350MW, and the project is divided into four areas, namely 1A, 1B, 1C and 1D. Upon completion, it will be the largest offshore wind power farm in ASEAN.
At the construction stage of 1A and 1B, Maybank provided $38.2 million for export bills discounted under Letters of Credit.
Dato John Chong, group CEO of Global Banking at Maybank said, "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 per cent 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 centre of our clients’ transition journey. Maybank has launched a Transition Finance Framework, the first of its kind in ASEAN, to assist transitioning clients in brown industries to green. Our regional leadership in sustainability is aligned with fulfilling our mission of Humanising Financial Services,” he added.
Michael Foong, country CEO of Maybank Vietnam said, “We anticipate an acceleration of foreign direct investments 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 is poised for upgrade from Frontier to Emerging Market status.”
Cumulatively from 2021 to end June 2024, Maybank as a group has mobilised RM83.2 billion ($19.2 billion), exceeding its 2025 target of mobilising $18.4 billion in sustainable finance.
Maybank Investment Bank (Vietnam) – a member of the Maybank Group – also 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.
Despite a declining global FDI trend, it is encouraging that a European investor believes in the potential of a Vietnamese agricultural enterprise like Phuc Sinh, with an intention to fund up to $25 million.
Kim Thien Quang, CEO of Maybank Investment Bank (Vietnam) said, “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 and sustainable development of Vietnamese enterprises.”
