HSBC provides SACE Push facility for GELEX

HSBC provides SACE Push facility for GELEX

HSBC, in collaboration with its Singapore and Việt Nam branches, the Italian Export Credit Agency (SACE), and Landesbank Baden-Württemberg (LBBW), has entered into an agreement to provide a SACE Push facility for GELEX Infrastructure JSC.

GELEX headquarter located in To Hien Thanh street, Hà Nội. — VNS Photo

HSBC, in collaboration with its Singapore and Việt Nam branches, the Italian Export Credit Agency (SACE), and Landesbank Baden-Württemberg (LBBW), has entered into an agreement to provide a SACE Push facility for GELEX Infrastructure JSC.

GELEX Infrastructure is a sub-holding of the GELEX Group, a well-known investor and developer with a focus on sectors such as energy, industrial real estate, social housing, construction materials and clean water production and supply. This partnership aims to support GELEX Infrastructure in its long-term growth and capital expenditure initiatives.

The five-year facility, with a total value of approximately US$40 million, receives SACE’s comprehensive financial guarantee covering 80 per cent of the loan. It will support GELEX Infrastructure’s capital expenditure for investing in its core business, facilitating corporate’s long-term growth strategies.

The SACE Push facility is financed by HSBC Singapore and LBBW acting as Mandated Lead Arrangers, while HSBC Singapore and HSBC Vietnam play roles of sole ECA Coordinating Bank, Facility and Security Agent and Account Bank.

“The deal’s success once again evidences how HSBC’s wide international network, deep expertise and thorough understanding of the local market allows us to meet the demands as Vietnamese companies continue to become more and more sophisticated in their financing needs”, shared Tim Evans, CEO and Head of Banking, HSBC Vietnam, “Through our strategic relationship, HSBC is honoured to accompany and support GELEX as they continue to grow internationally." 

This deal also marks a new stage in HSBC and GELEX’s strategic relationship, and opens up more possible opportunities for their cooperation in near future.

The Deputy General Director of GELEX Group, Lê Tuấn Anh, said “This loan will help GELEX Infrastructure access long-term capital in foreign currency, promoting investment activities in our core business. We are committed to effectively using the funded capital to help the company develop sustainably. At the same time, I hope this will be the beginning of both organisations’ cooperation in other projects in the future.”

Launched in 2017, the SACE Push programme aims to promote bilateral trade between Việt Nam and Italy by connecting buyers and suppliers in both markets. This ECA programme provides the guarantee for long-term financing without restricting the nature of goods and with no requirement for available contracts between buyers (borrowers) and Italian suppliers.

Participating buyers may enjoy easier access to funding thanks to SACE’s financial guarantee, and receive SACE’s economic incentive once a target amount of procurement from Italy is reached within an agreed period from the signing of the facility. Both buyers and suppliers will have opportunities to join SACE’s match-making events, increasing opportunities to find suitable business partners.

This is the second time that HSBC has successfully arranged SACE Push facility for a Vietnamese corporate, following the successful deal for Nutifood in 2021. 

Bizhub