HSBC’s first green trade facility in seafood industry
HSBC’s first green trade facility in seafood industry
HSBC Bank (Vietnam) Ltd. (HSBC Vietnam) and Vinh Hoan Corporation (Vinh Hoan) have entered into an agreement whereby HSBC Vietnam will provide green trade financing to Vĩnh Hoàn.
Ahmed Yeganeh, Head of Wholesale Banking, HSBC Vietnam and Nguyen Ngo Vi Tam, CEO of Vinh Hoan exchange a flower bouquet after signing the agreement. — Photo courtesy of HSBC |
This marks the first ever green facility that HSBC Vietnam has arranged for Vĩnh Hoàn, and also for the seafood sector, demonstrating support for the Vietnamese seafood producer on their sustainability journey.
As a tropical country with long coastline covering over 3,000km and home to more than 1,300 seafood species, Việt Nam has the potential to have a prosperous seafood sector. The industry accounts for nearly one quarter of agriculture GDP, while Việt Nam’s seafood industry is the world’s third largest exporter by turnover, and the fourth largest by output.
However, Việt Nam’s strengths in seafood industry might rapidly diminish, as Việt Nam is warned to be one of the top five countries likely to be adversely affected by climate change.
“Dealing with climate change and protecting our economy from its impacts, including the seafood industry, is a priority for HSBC in Việt Nam”, said Ahmed Yeganeh, Head of Wholesale Banking, HSBC Vietnam.
“It is central to our strategy to support corporates in Việt Nam who have a clear sustainability vision and plan like Vĩnh Hoàn. As strategic partner with a relationship spanning 24 years, HSBC is delighted and proud to be accompanying Vĩnh Hoàn in their pursuit of a circular economy, transforming themselves and inspiring others to join the green transition.”
To receive the short-term green trade loan to support their working capital for sustainable seafood production, Vĩnh Hoàn and its subsidiaries have gone through HSBC’s stringent credit approval and management process for sustainable financing.
The green facility must also meet the high standards listed under the international Green Loan Principles, jointly issued by Loan Market Association and Asia Pacific Loan Market Association.
