HSBC Vietnam and Gemadept signed a sustainable linked loan agreement

HSBC Vietnam signed a sustainable linked loan agreement with Gemadept Joint Stock Company (Gemadept) on May 28.

This is the next step in Gemadept's strategy for development and green capital access, also reaffirming HSBC Vietnam’s role and efforts in supporting Vietnamese businesses’ projects to become more sustainable.

Port exploitation and logistics play a "lifeblood" role for the economy, an important bridge in domestic and global trade. The potential of the industry is further affirmed, thanks to the continuous growth of Vietnam's imports and exports in the recent time, demonstrating by a year-on-year increase of 15.5 per cent in total trade turnover in the first quarter of 2024.

This deal marked the first sustainable linked loan that HSBC successfully arranged for a Vietnamese enterprise in ports and logistics. To achieve this facility, Gemadept has gone through HSBC's credit management and approval process on sustainable finance, as well as building Key Performance Indicators (KPIs) in its green and sustainable development strategy. Gemadept will complete its ports’ measurement and report of Scope 1,2,3 GHG emissions, certified by Vinamarine Green Port Standards, set by  the Vietnam National Maritime Bureau under the Ministry of Transport.

"We always consider business development and minimizing environmental impacts two parallel goals to achieve sustainability together with the society," said Mr. Nguyen Thanh Binh, General Director of Gemadept. "The Sustainable Linked Loan Agreement that HSBC and Gemadept have signed offers us not only a financial support, more importantly, it’s an affirmation of our company’s commitment to the Sustainable Development Strategy, while conveying a positive message to our customers, partners, investors and society. In the coming time, Gemadept will continue to make efforts, contributing to greening the maritime industry and the economy."

Mr. Ahmed Yeganeh, Head of Wholesale Banking, HSBC Vietnam, shared that this underscores HSBC’s capabilities in unlocking sustainable and green capital with innovative and effective financial solutions, that meet local business needs. "I am confident that this opportunity will enhance the strategic collaboration between HSBC Vietnam and Gemadept in the future," he added.

This sustainable linked loan marks a new chapter of the two partners' strategic cooperation.