HSBC Bank Vietnam has made another significant green financing deal by arranging a green loan for Viettel IDC, Vietnam’s largest data center service provider. With a loan facility worth $16.9 million (VN400 billion) and a five-year period, Viettel will now have access to the one of the world’s largest banking and financial services organizations.
The green financing agreement refers to the move that emphasizes how both organizations have a common objective for sustainable development, carbon neutrality, and assisting Vietnam on its transition to net zero.
The agreement with HSBC Vietnam will assist Viettel IDC in purchasing machinery and equipment for the construction of a sustainable data center in Hanoi. To reduce the data center’s power consumption and achieve the company’s aim of managing this data center’s Power Usage Efficiency (PUE) more sustainably and below the global industry average PUE figure of 1.5, high-quality and internationally standardized devices are needed.
This green loan highlights the bank’s goal to broaden its reach for sustainable financing across various sectors of the Vietnamese economy and highlights HSBC’s leadership position in offering sustainable financial solutions to businesses in Vietnam.
Viettel IDC successfully completed HSBC’s rigorous credit approval and management process for sustainable financing in order to be eligible for this green financing. The HSBC Asia Pacific Sustainable Loans Committee is in charge of overseeing the procedure.
Moreover, the green facility must also adhere to the stringent criteria outlined in the international Green Loan Principles, which were jointly released by the Loan Market Association and Asia Pacific Loan Market Association. These principles include four essential elements such as the use of proceeds, project selection and evaluation, management of proceeds, and reporting
According to Tim Evans, CEO of HSBC Vietnam, Viettel and HSBC Vietnam have been working together for a very long time. With the new milestone that has been achieved with this green, this strategic connection has now been further enhanced.
The largest telecommunications service provider in Vietnam is transitioning its operations to become a greener business, and HSBC bank is proud to support them.
This transaction not only demonstrates HSBC Vietnam’s dedication to assisting Vietnam in securing up to US$12 billion in green financing, but it also highlights HSBC’s ongoing mission to support the development and growth of Vietnam and Vietnamese companies, something they have been doing since their first operations were established.
