HSBC Arranges Non-binding Loan Guarantee Transaction for GELEX Infrastructure

Specifically, the Hong Kong and Shanghai Banking Corporation (HSBC) - Branches in Singapore and Vietnam, together with the Italian Government Credit Insurance Corporation (SACE) and Landesbank Baden-Württemberg (LBBW), have just arranged a non-binding loan guarantee transaction for GELEX Infrastructure Joint Stock Company - a member unit of GELEX Group, an investment and development group in the fields of electrical equipment, industrial parks and real estate, energy and clean water.

GELEX Infrastructure is one of two sub-holding companies of GELEX, managing reputable businesses operating in the fields of Real Estate and Industrial Parks; Energy - Clean Water, with businesses such as Viglacera Corporation - JSC; Song Da Clean Water Investment JSC; Long Son Petroleum Industrial Park Investment JSC...

The five-year loan facility, with a total value of approximately US$40 million, is supported by a comprehensive financial guarantee of up to 80% provided by SACE. This unsecured loan guarantee transaction is sponsored by HSBC Bank Singapore and Landesbank Baden-Württemberg (LBBW) as the Principal Arrangers (MLA). HSBC Singapore and HSBC Vietnam are the Sole ECA Loan Coordinators, Loan and Security Agents, and Account Banks.

First introduced in 2017, SACE’s non-binding loan guarantee program aims to promote bilateral trade between Vietnam and Italy by connecting buyers and suppliers in the two markets. The program provides guarantees for long-term loans without any restrictions on the type of goods, nor does it require the buyer (borrower) and the Italian supplier to have a pre-purchase agreement. Borrowers participating in the program can easily access capital thanks to SACE’s financial guarantee, and at the same time enjoy economic incentives from SACE once they reach the set purchase volume within a predetermined period from the date of signing the loan. Buyers and suppliers can also participate in matchmaking programs organized by SACE, increasing their chances of finding suitable business partners.

This is the second time HSBC has successfully arranged a non-binding loan guarantee transaction from SACE for a Vietnamese enterprise, since the Nutifood deal in 2021. HSBC has been present in Vietnam for more than 150 years and is currently one of the largest foreign banks in Vietnam in terms of capital, product structure, and number of customers. With an extensive international network, deep expertise and understanding of the domestic market, the bank can meet the increasing demands of Vietnamese enterprises in the process of growing and entering the international market.

Mr. Tim Evans, CEO and Head of Corporate and Institutional Banking, HSBC Vietnam, shared: “Through this partnership, HSBC will accompany and support GELEX on their journey to the international market. As a foreign bank that has been present in Vietnam for 155 years, we are proud that the bank has the capacity to support Vietnamese businesses to go global."

On GELEX's side, Mr. Le Tuan Anh - Deputy General Director of GELEX Group, member of the Board of Directors of GELEX Infrastructure said: "This loan will help GELEX Infrastructure access long-term capital in foreign currency, promote investment activities in the core business areas of the enterprise, creating conditions for implementing the company's long-term growth strategies".

GELEX leaders also expressed their commitment to effectively using the funded capital to bring sustainable development to the company. At the same time, they hope that this will be the beginning of cooperation in other future projects between HSBC and GELEX.

Source: https://nhandan.vn/hsbc-thu-xep-giao-dich-bao-lanh-khoan-vay-khong-rang-buoc-cho-ha-tang-gelex-post867532.html