Shinhan Bank Vietnam Leads Syndicated Term Loan Facility for Trà Khúc 2 Hydropower Project

The signing ceremony of the syndicated term loan facility agreement to finance for Tra Khuc 2 Hydropower Project took place at the Head Office of Shinhan Bank Vietnam Limited (“Shinhan Bank Vietnam”).

The syndicated loan has a total committed value of up to VND 740 billion, with the participation of 3 banks: Bank of China (Hong Kong) - Ho Chi Minh City branch, Woori Bank Vietnam and led by Shinhan Bank Vietnam, which is acting as the loan’s lead bank and collateral management agent.

Tra Khuc 2 Hydropower Project, with a capacity of 30MW, is developed by Tra Khuc 2 Hydropower JSC – a subsidiary of REE Energy, expected to generate an average of 120.51 million kWh/year, located on an area of ​​land and river bed of more than 253 hectares in Son Ha District, Quang Ngai Province. When putting into operation, Tra Khuc 2 Hydropower Project will contribute to supplementing the national grid and directly supplying electricity to socio-economic activities of Quang Ngai province. In addition, the project also contributes to improving infrastructure such as roads and power grids in the construction area, creating more jobs and increasing income for local people.

Shinhan Bank Vietnam and REE Energy as well as other REE subsidiaries have long established credit relationships through various of bilateral loans. However, this is the first time Shinhan Bank Vietnam has been authorized to arrange a large-scale syndicated loan, with the established consortium of Bank of China (Hong Kong) - Ho Chi Minh City branch and Woori Bank Vietnam to finance for a new hydropower project of the group.

After passing the appraisal and high standard analysis procedure with many criteria from the lenders, the project has proven its feasibility for implementation, in addition, the investor, Tra Khuc 2 Hydropower JSC- a member of REE Energy, has also demonstrated a level of prestige and stable financial health qualified to implement the project in the long term.

In the context of the recently approved Power Plan VIII on the national power development structure for the period 2021-2030, with a vision to Y2050, in which hydropower still occupies a big portion (19.5% as of Y2030), Tra Khuc 2 Hydropower Project is implemented in line with the government's orientation, contributing to clean and sustainable renewable energy sources to the national power structure.

With the commitment to jointly finance for this project, Shinhan Bank Vietnam, Bank of China (Hong Kong) - Ho Chi Minh City Branch and Woori Bank Vietnam, on the one hand, demonstrate their respect for ESG commitments, on the other hand, affirm their long-term commitment and companionship with the sustainable development of the Vietnamese economy.

By Anh Mai, Vietnam Business Forum