The loan has a term of 5 years, with a total value of approximately USD 40 million, and is provided with a comprehensive financial guarantee of up to 80% by SACE.

The unbound loan guarantee transaction for GELEX Infrastructure is sponsored by HSBC Bank Singapore and Landesbank Baden-Württemberg (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.

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.

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.”

GELEX Infrastructure is a subsidiary of GELEX, a Group operating under the investment and development model in the fields of electrical equipment, industrial parks and real estate, energy and clean water. GELEX Infrastructure manages member enterprises such as Viglacera Corporation - JSC; Song Da Clean Water Investment JSC; Long Son Petroleum Industrial Park Investment JSC...

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 to implement 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.

HSBC has been present in Vietnam for over 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, HSBC meets the increasing demands of Vietnamese enterprises in the process of growing and entering the international market.

Source: https://vietnamnet.vn/hsbc-thu-xep-khoan-vay-khong-rang-buoc-khoang-40-trieu-usd-cho-gelex-ha-tang-2384091.html