REE accelerated its own transition in 2020, when it turned its sights towards the renewable energy sector with a VND1 trillion (US$43.5 million) solar power investment, the group’s first major solar project.
To support the move, HSBC provided a VND660 billion, seven-year, bilateral green term loan to the new solar energy subsidiary, alongside an additional VND150 billion of trade financing to finance the import of solar equipment and other working capital.
REE has since doubled down on its sustainability shift. In 2021, the group installed over 100MW of wind power capacity and sold a stake in Quang Ninh Thermal Power, a major coal power producer.
And in 2022, the company again turned to HSBC for a VND900 billion seven-year green loan to finance the construction of the eTown 6 office complex, a 40,000 square metre green building in Ho Chi Minh City designed to the highest LEED Platinum standards for energy efficiency.
HSBC’s funding for REE is part of the bank’s mission to steer up to US$1 trillion of financing and investment towards sustainability initiatives and a sustainable future in the next 10 years. In Vietnam, HSBC has committed to arrange up to US$12 billion of direct and indirect sustainable financing for the country and its corporate sector by 2030.3
“HSBC sees it as our duty to support the global transition to a net-zero carbon economy through financing projects that are associated with this objective,” said HSBC Vietnam CEO, Tim Evans. “By helping REE access green financing, we are together fulfilling a commitment to play our part in leading the way for the national development of renewable energies and energy transition.”