GELEX completes international financing transaction worth $79 million

GELEX completes international financing transaction worth $79 million

GELEX Group announced the completion of a loan facility guaranteed by the Italian Export Credit Agency (SACE) with a total value of $79 million on May 29.

The agreement was signed between GELEX Group, GELEX Infrastructure JSC, GELEX Electric JSC, and a banking syndicate comprising HSBC, through its branches in Singapore and Vietnam, and Landesbank Baden-Württemberg (LBBW).

This transaction will not only enable GELEX to diversify its sources of capital at competitive costs, but also marks the group’s increasing access to leading international financial institutions without any commercial purchase commitments or trade-related conditions. This is a new financing structure, typically available only to enterprises with transparent operations, strong financial capacity, and strategic influence in the region.

Nguyen Trong Hien, chairman of GELEX, stated, “We are committed to aligning with international standards in financial governance and investment. This transaction not only strengthens GELEX’s capacity to deliver on its strategic projects but also reflects the trust that global financial institutions place in the capabilities and sustainable vision of Vietnamese enterprises. It marks the starting point in our broader strategy to mobilise international capital in pursuit of GELEX’s long-term, efficient, and sustainable growth goals.”

In this transaction, HSBC and LBBW acted as lead arrangers, both being prominent names in global trade and project finance. HSBC also served as the sole ECA coordinating bank, facility agent, security agent, and account bank, while LBBW participated as co-lender. The transaction is guaranteed by SACE, recognised as the world’s largest export credit agency in 2024, known for its rigorous due diligence process and guarantee coverage of up to 80 per cent of loan value.

Tim Evans, CEO and head of banking at HSBC Vietnam, shared,“We are proud to accompany and support GELEX, a leading investment group in Vietnam, as they look to international markets. This will enable GELEX to achieve even greater success and reflects HSBC’s structuring capabilities and expertise, along with our deep understanding of the local market, which underpins our long-term commitment to providing Vietnamese businesses with international capital.”

The proceeds from the loan will be used for GELEX’s strategic objectives, including investment, core business expansion, and accelerating digital transformation in governance. This move not only enhances GELEX’s competitiveness but also aligns with Vietnam’s national goals for green growth and financial integration with global markets.

The SACE-guaranteed facility, arranged by two reputable banks, demonstrates international confidence in Vietnam’s green growth potential. Institutions of this calibre typically partner only with businesses that meet high standards of creditworthiness, governance, and long-term strategy.

GELEX’s successful access to this financing affirms that the company meets stringent international standards and plays an active role in positioning Vietnamese enterprises within the global value chain and advancing the nation’s sustainable development goals.

Stefan Rethmeier, head of corporates and export finance at LBBW Singapore, stated, “We see GELEX as a long-term partner contributing meaningfully to Vietnam’s sustainable development strategy. This transaction is not just about a financing transaction – it’s a partnership for a future of inclusive growth and green transformation.”

VIR