Malaysia’s Leader Energy wins HSBC deal for Vietnam portfolio

Leader Energy has signed a VND593 billion ($23.3 million) loan agreement with HSBC to facilitate the development of solar power projects in Vietnam.

Malaysia’s Leader Energy Holdings Bhd (Leader Energy), a wholly owned subsidiary of HNG Capital, signed the agreement on July 8.

The deal marks the bank’s second with Vietnam’s Leader Energy, following financing for a hydropower plant in 2017.

HSBC is acting as sole lender on the seven-year loan, which Leader Energy will use to help refinance its newly acquired 50MW solar farm, Vinhao 6 (VH6).

Located in the central province of Binh Thuan, the project began commercial operations in 2019 and generates all revenues through the sale of electricity to Vietnam Electricity at a feed-in tariff of 9.35 cents/kWh under a 20-year power purchase agreement. The project will generate 83,000 MWh of electricity per year and offset more than 75,130 tonnes of greenhouse gas (GHG) emissions.

VH6 has been wholly owned by Leader Energy since last year, reaffirming the company’s commitment to over 500MW of renewable energy assets in Vietnam.

The agreement also showcases Vietnam’s renewable energy potential, given the government’s commitment to achieve net-zero emissions by 2050. In line with this commitment at COP26, Vietnam aims to focus on its energy transition, as the sector accounts for more than half of the country’s greenhouse gas emissions. Moreover, the country’s natural resources have the potential to attract further investment in the country’s renewable energy sector.

Leader Energy’s group CFO Jeannie Ng said: “We are pleased that with our close collaboration with HSBC Vietnam and HSBC Malaysia, we have successfully refinanced VH6 on more favourable terms.”

“This financial decision demonstrates our commitment to be a partner in Vietnam’s energy transition as we expand our renewable energy portfolio to help the country deliver on its pledge to achieve its net-zero target by 2050,” he added.

Ahmed Yeganeh, country head of wholesale banking at HSBC Vietnam, said: “We are proud to continue supporting Leader Energy’s efforts towards decarbonising Vietnam’s energy sector. This transaction demonstrates how the financial sector can play an active role in unlocking Vietnam’s renewable energy potential.”

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Thanh Van

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