Maybank provides green trade finance for largest offshore wind farm in Vietnam and ASEAN
Bank financing China’s Sinohydro’s work in the Ca Mau 1 offshore wind project, set to be the largest in the region at 350 MW.
Maybank, a leading bank in the ASEAN region, has extended financing to Sinohydro, a subsidiary of the Power Construction Corporation of China (POWERCHINA), for an EPC (Engineering, Procurement & Construction) project to build the offshore wind power farms of the Ca Mau 1 Wind Power Project in Ca Mau, Vietnam’s southernmost province.
Total installed capacity of Ca Mau 1 is expected to be 350 MW, and the project is divided into four areas: 1A, 1B, 1C, and 1D. Upon completion, it will be the largest offshore wind power farm in ASEAN.
At the construction stage of 1A and 1B, Maybank provides $38.2 million for export bill discounting under Letters of Credit.
“Cross-border trade and investments between China and Vietnam continue to intensify,” Mr. Dato’ John Chong, Group CEO of Global Banking at Maybank, said. “In 2023, China was Vietnam’s top foreign direct investor and trading partner, accounting for 25 per cent of both Vietnam’s total registered investments and trade volume. Maybank is strategically positioned to facilitate these transactions with our offerings and presence in China and all ten ASEAN markets.”
“We also want to be at the center of our clients’ transition journey,” he continued. “Maybank has launched a Transition Finance Framework, the first of its kind in ASEAN, to assist transitioning clients in brown industries to go green. Our regional leadership in sustainability aligns with fulfilling our mission of Humanizing Financial Services.”
For his part, Mr. Michael Foong, Country CEO of Maybank Vietnam, said, “We anticipate an acceleration of FDI into renewables and other green technologies in Vietnam, driven by sustainable debt and green trade financing. Towards this, we have been connecting Vietnamese businesses to international investors as the country is poised for an upgrade from Frontier to Emerging Market status.”
From 2021 to the end of June 2024, Maybank as a group has mobilized RM83.2 billion ($19.2 billion) in sustainable finance, exceeding its 2025 target of mobilizing RM80 billion ($18.4 billion).
Recently, the Maybank Investment Bank (Vietnam) - a member of the Maybank Group - acted as the exclusive financial advisor to the Phuc Sinh Corporation, a leading Vietnamese spice exporter, in securing investment from the &Green Fund, a fund managed by SAIL Ventures, a global sustainable investment manager headquartered in the Netherlands. Despite a declining global FDI trend, it is encouraging that a European investor believes in the potential of a Vietnamese agricultural enterprise like Phuc Sinh, with an intention of funding up to $25 million.
“We are proud to support Phuc Sinh in this significant deal,” said Mr. Kim Thien Quang, CEO of Maybank Investment Bank (Vietnam). “Sustainable investment not only benefits businesses but also contributes to the sustainable development of Vietnam’s economy. We believe this partnership will create lasting value for both parties and help drive the green capital market and sustainable development of Vietnamese enterprises.”
