HSBC arranges US$105 million green loan for EVNNPC

HSBC arranges US$105 million green loan for EVNNPC

With an eight-year door-to-door tenor, the transaction is at the longer end of Việt Nam’s offshore syndicated loan market, where comparable market precedent remains limited.

HSBC Vietnam secures a US$105 million syndicated green loan for EVNNPC. — Photo coutersy of EVNNPC

HSBC Bank (Vietnam) Ltd. has successfully arranged a US$105 million offshore syndicated green term loan facility for Northern Power Corporation (EVNNPC), marking the power utility’s first offshore syndicated green financing.

The proceeds will be used to finance battery energy storage system (BESS) units to be installed alongside existing 110kV substations across northern Việt Nam.

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 transaction is at the longer end of Việt Nam’s offshore syndicated loan market, where comparable market precedent remains limited.

It was significantly oversubscribed and attracted 15 lenders from China, the Republic of Korea, Taiwan (China) and Thailand. Its successful execution demonstrates strong lender confidence in EVNNPC and the strategic importance of grid-scale energy storage to Việt Nam’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, HSBC Vietnam.

“This landmark transaction combines tailored green financing with the practical infrastructure needed to strengthen grid resilience and support Việt Nam’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 EVNNPC 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. 

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