The Tra Khuc 2 Hydropower project secures a syndicated term loan facility worth $29.2 million. Photo: Shinhan Bank Vietnam

The signing ceremony for the finance agreement took place at the head office of Shinhan Bank Vietnam on November 12. Shinhan Bank Vietnam is acting as the loan’s lead bank and collateral management agent.

The project is being developed by Tra Khuc 2 Hydropower JSC – a subsidiary of REE Energy, and is expected to generate an average of 120.51 million kWh/year, located on more than 253 hectares in Son Ha District, Quang Ngai province. Once operational, the project will contribute to supplementing the national grid and directly supplying electricity to socioeconomic activities of Quang Ngai province. In addition, the project will contribute to improving infrastructure such as roads and power grids in the area, creating more jobs and increasing local incomes.

Shinhan Bank Vietnam and REE Energy as well as other REE subsidiaries have a long-established credit relationship through various bilateral loans. However, this is the first time Shinhan Bank Vietnam has been authorised 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 a new hydropower project for the group.

After passing the appraisal and high standard analysis procedure with many criteria stipulated by the lenders, the project has proven its feasibility. In addition, the investor 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, in which hydropower occupies a big portion (19.5 per cent as of 2030), the project will be implemented in line with the government's orientation, contributing to clean and sustainable renewable energy sources.

With a commitment to jointly finance the project, Shinhan Bank Vietnam, Bank of China (Hong Kong) - Ho Chi Minh City Branch, and Woori Bank Vietnam, demonstrate their respect for environmental, social, and governance commitments and affirm their long-term commitment to the sustainable development of the Vietnamese economy.