HSBC joins GIC to offer green financing for rooftop solar power projects

Homeowners will now be able to apply for the special interest lending programme at HSBC Vietnam to purchase their own rooftop solar energy system amid growing demand for energy, especially clean energy, from private homeowners.

The preferential green lending scheme comes as part of HSBC’s global commitment to sustainable finance, in which the UK-based lender has pledged to provide $100 billion of sustainable financing and investment by 2025 around the world.

Offered in conjunction with renewable energy company GIC Investment JSC (GIC), the new loan product is a simple and affordable way for existing HSBC customers to power up their house with solar energy while reducing the cost of monthly electricity bills by leveraging on an unlimited energy source, easing the national power supply and contributing to a more sustainable future of the country.

“More and more Vietnamese are increasingly aware that using solar energy is more sustainable and willing to invest in this system,” said Le An Khang, chairman of GIC. “But for homeowners, the big question has always been: “Can I afford this?” That’s why we are so excited to join hands with HSBC Vietnam to create this ‘Green Loan’ product.”

Widespread use of solar panels in residential areas through the country would help ease the strain on the national power grid in Vietnam as well as positively affect the environment and boost climate resilience. With power demand projected to increase by 8 per cent annually during 2021 - 2031, Vietnam needs 60,000MW of electricity by 2020, 96,500MW by 2025, and 129,500MW by 2030. To do so, the government is moving forward to develop renewable energy sources to ensure energy security and address the growing power demand.

GIC’s rooftop solar energy systems, meanwhile, are manufactured and certified according to European quality standards with 12-year product warranty and 25-year performance warranty.

“It’s more essential than ever that economic growth strives to achieve maximum sustainability and in that regard we acknowledge our role to accompany customers in this development process. We always understand and meet customer needs through suitable products and solutions while enhancing customer experience so that they can enjoy a green life,” said Phuong Tien Minh, head of Retail Banking and Wealth Management at HSBC Vietnam.

“For that reason, HSBC Vietnam is delighted to enter a partnership with GIC, which shares our passion for promoting clean energy and green solutions in Vietnam. Over the last six months, we have been working closely with each other to devise a quality lending programme that we believe can really make a difference.”

Existing HSBC Vietnam’s customers who have an intention to install a rooftop solar energy system for their landed house in Danang and Ho Chi Minh City, can apply for the green loan and receive the financing while enjoying HSBC’s lowest unsecured loan variable interest rates of 11.99 per cent and 12.99 per cent for premier customers and mass retail customers, respectively. A long repayment term of up to 60 months is also an advantage of the programme.

In addition, customers also enjoy preferential discount directly on GIC products which is 14 per cent for premier customers and 12 per cent for mass retail customers.

By creating a new lending product to support the production and consumption of solar energy in residential areas, HSBC Vietnam plays a vital role in contributing to greener and more sustainable communities in which the bank operates, supporting its clients in their sustainability efforts through embedding sustainability consideration into our products and services.