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|The representatives of HSBC Vietnam and Duy Tan Plastics Corporation inking a green credit agreement|
The factory, with the planned capacity of up to 100,000 tonnes per year, is the first in Vietnam to apply the Bottles to Bottles process, which is to recycle used plastic bottles into plastic raw materials for the next production of plastic bottles. In order to receive this green credit by HSBC, Duy Tan’s project had to go through the bank's strict credit approval and management process of sustainable financing controlled by HSBC Asia-Pacific Sustainable Loans Committee, the dedicated body of the bank with rich experience in successfully arranging green financing in different fields around the world.
At the same time, the green deal is required to meet the high standards of the international Green Loan Principles jointly issued by Loan Market Association and Asia-Pacific Loan Market Association. It includes four core components: use of proceeds, project selection and evaluation, management of proceeds, and reporting.
Joining HSBC’s green financing, Duy Tan gets expert consultancy in green finance, sustainable development, and green project governance. Simultaneously, a green credit in its profile will help broaden Duy Tan’s prospects of accessing the international capital market in the future.
Stephanie Betant, country head of Wholesale Banking, HSBC Vietnam, said, “We are proud to work with Duy Tan to achieve a common goal of growing sustainable financing in Vietnam. As a key player in Vietnam’s plastic industry, Duy Tan has proved to be in the forefront of innovation in all they strive for. With more than a decade of collaboration, we continue our journey in bringing innovation to Vietnam and after completing the first live blockchain L/C transaction in Vietnam in 2019, today we close this green loan. We hope that Duy Tan will lead the path for Vietnamese corporates in growing green financing and sustainability for Vietnam’s economy.”
Anh Le, head of marketing at Duy Tan, also shared, “As a leading Vietnamese brand in the plastic industry, contributing to the greening of our home country by curbing plastic waste is our obligation. We hope that the new factory, with the financing of HSBC, will support us in our strategy of sustainable development and continuing bringing more long-term values to our consumers and community.”
Aligning with the Vietnamese government’s national strategy on green growth and the State Bank of Vietnam’s development scheme of green banking, HSBC’s green financing for Duy Tan Plastic Recycling Factory shows the long-term vision of both organisations in building Vietnam’s sustainable economy.
“It is a very positive signal to showcase how Vietnamese large corporates are transforming in a more sustainable way. From 1870 when we opened our first office in Ho Chi Minh City, our purpose has never changed. We want to enable businesses to thrive, Vietnam’s economy to prosper and Vietnamese people to fulfil their hopes and realise their ambitions. We are proud to accompany Vietnam’s businesses in the journey of sustainable growth," added Betant.