Malaysian firm Leader Energy secures deal with HSBC for its Vietnam portfolio

Malaysian company Leader Energy Holding Berhad (Leader Energy), wholly owned by HNG Capital, signed the agreement on July 8.

The deal marks the bank’s second transaction with Leader Energy in Vietnam, following the financing of a hydropower plant in 2017.

HSBC is the sole lender on a seven-year loan that Leader Energy will use to support the refinancing of Vinh Hao 6 (VH6), its recently acquired 50 MW solar power plant.

The project, located in the central province of Binh Thuan, entered commercial operation in 2019, generating all revenue from selling electricity to Vietnam Electricity at a feed-in tariff of 9.35 cents/kWh under a 20-year power purchase agreement. The project generates 83,000 MWh and offsets more than 75,130 tons of greenhouse gas (GHG) emissions annually.

Since last year, VH6 has been wholly owned by Leader Energy, confirming the company’s commitment to renewable energy assets in Vietnam with a combined capacity of over 500 MW.

The agreement also shows Vietnam’s renewable energy potential, given the government’s commitment to achieving net zero emissions by 2050. Following this commitment at COP26, Vietnam intends to focus on energy transformation, as the sector accounts for more than half of greenhouse gas emissions. In addition, the country’s natural resources offer the potential to attract greater investment into the renewable energy sector.

Jenny Ng, Group Chief Financial Officer of Leader Energy, said: “We are pleased with the successful refinancing of our VH6 as the deal, secured through HSBC Vietnam in close cooperation with HSBC Malaysia, provided more favourable terms.”

“This financing decision demonstrates our ability to commit to partnering with Vietnam in its energy transition. Here, we are expanding our renewable energy portfolio to help the country meet its commitment to achieving net-zero emissions by 2050,” he added.

Ahmed Yeganeh, Head of Wholesale Banking at HSBC Vietnam, said: “We are proud to continue to support Leader Energy in its efforts to decarbonise Vietnam’s energy sector, and this agreement demonstrates how the financial sector can play an active role in unlocking the country’s renewable energy potential.”

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