HSBC arranges EVNNPC's debut $105 million green loan

HSBC arranges EVNNPC's debut $105 million green loan

HSBC Vietnam on October 27 announced it has successfully arranged Northern Power Corporation’s debut offshore $105 million syndicated green term loan facility.

Photo: HSBC

Announced on October 27, the proceeds will finance the client's Battery Energy Storage System (BESS) units installed alongside existing 110kV substations across northern Vietnam.

HSBC acted as Sole Mandated Lead Arranger, Underwriter and Bookrunner, Sole Green Coordinator, and Facility Agent for the transaction. With an eight-year door-to-door tenor, the deal sits at the longer end of Vietnam's offshore syndicated loan market, where comparable precedent remains limited.

It was significantly oversubscribed and attracted 15 lenders from China, South Korea, Taiwan, and Thailand. The successful execution demonstrates strong lender confidence in Northern Power Corporation (EVNNPC) and the strategic importance of grid-scale energy storage to Vietnam's energy transition.

EVNNPC’s BESS programme will be deployed across 70 existing substations, helping to strengthen grid stability and reliability, meet growing electricity demand, and reduce the risk of grid congestion and outages. The project will also support the implementation of the revised Power Development Plan VIII and advance the development of energy storage systems under the National Energy Master Plan.

“HSBC is proud to support EVNNPC’s first offshore syndicated US dollar financing and its investment in battery energy storage infrastructure,” said Tim Evans, CEO and head of Banking at HSBC Vietnam. “This landmark transaction combines tailored green financing with the practical infrastructure needed to strengthen grid resilience and support Vietnam’s transition towards a more flexible and sustainable power system. The strong participation from lenders reflects the market’s confidence in EVNNPC and the importance of this programme.”

The transaction further strengthens HSBC’s relationship with EVNNPC, following the successful completion of several bilateral long-term onshore facilities. Securing funding from international markets will enable the power company to diversify its funding sources, while reinforcing HSBC’s position as a trusted partner supporting the varied financing needs of Vietnamese corporates.

By structuring the facility as a green loan in line with the Green Loan Principles, HSBC worked closely with EVNNPC to align the financing with the environmental benefits of its BESS programme. The transaction demonstrates how tailored sustainable finance can help mobilise capital for critical energy infrastructure.

The transaction aligns with the State Bank of Vietnam’s direction to encourage syndicated financing for large-scale projects. It also demonstrates HSBC’s commitment to helping local corporates grow, diversify their funding, and invest in a more resilient, sustainable economy.

VIR