HSBC Arranges SACE's Unbound Loan Guarantee Transaction for GELEX Infrastructure

HSBC thu xếp giao dịch bảo lãnh khoản vay không ràng buộc của SACE cho Hạ tầng GELEX

The Hongkong and Shanghai Banking Corporation (HSBC) - Branches in Singapore and Vietnam - cooperated with the Italian Government Credit Insurance Corporation (SACE) and Landesbank Baden-Württemberg (LBBW) to arrange 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.

The five-year loan, with a total value of approximately USD 40 million, and with a comprehensive financial guarantee of up to 80% provided by SACE, will support GELEX Infrastructure's capital expenditure to invest in its core business, facilitating the implementation of the company's long-term growth strategies.

This unbound loan guarantee transaction is sponsored by HSBC Bank Singapore and LBBW as the Major Arrangers (MLA). HSBC Singapore and HSBC Vietnam are the Sole ECA Loan Coordinators, Loan and Security Agents, and Account Opening Banks.

Mr. Tim Evans, CEO and Head of Corporate and Institutional Banking, HSBC Vietnam, shared: “The success of this transaction once again demonstrates that HSBC, with its extensive international network, deep expertise and understanding of the local market, can meet the requirements of Vietnamese businesses as they grow stronger. Through this strategic partnership, HSBC is honored to 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.”

This cooperation also marks a new stage in the strategic relationship between HSBC and GELEX, and opens up more opportunities for cooperation in the near future.

Mr. Le Tuan Anh, Deputy General Director of GELEX Group, said: “This loan will help GELEX Infrastructure access long-term capital in foreign currency, promoting investment activities in the core business areas of the enterprise. We are committed to effectively using the funded capital to bring sustainable development to the company. At the same time, we hope this will be the beginning of cooperation in other projects in the future.”

First introduced in 2017, SACE’s untied 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, and does not require the buyer (borrower) and the Italian supplier to have a pre-existing purchase agreement.

Borrowers participating in the program can easily access capital thanks to financial guarantees from SACE, and enjoy economic incentives from SACE once they achieve the set purchase volume within a predetermined period from the date of signing the loan. Buyers and suppliers can also participate in networking 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 deal with Nutifood in 2021.

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