Treasury and Payments
Supporting Vietnam’s wind power ambitions
In support of Vietnam’s coal-free ambitions, J.P. Morgan is committing $330 million in trade financing to banks in Vietnam for the procurement of equipment for wind power projects.
J.P. Morgan has been mandated by two state-owned Vietnamese financial institutions to facilitate trade loans to support three wind power projects, including two onshore and one offshore wind projects.
This includes two onshore and one offshore wind projects – Nhon Hoa II Wind Power1 in Gia Lai and Huong Tan Wind Project2 in Quang Tri will generate 50 and 46.2 megawatts of onshore wind energy, respectively; while a wind farm project in Vietnam’s North Central coast region will produce 45 megawatts of offshore wind power. The projects will help Vietnam accelerate its plans to boost the adoption of renewable energy and deliver on its net-zero coal pledge by 2050 announced at the Conference of the Parties (COP26).
With a coastline spanning 3,000 kilometers and winds that blow from 5.5 to 7.3 meters per second, Vietnam boasts huge unexploited wind power potential. Combined with the government’s ambitious targets of generating 18 gigawatts of wind power capacity by 20303, the country has become a new hot spot for the global offshore wind industry.
Ms. Le Minh Huong, Director of VietinBank Trade Finance Center
The Nhon Hoa II and Huong Tan Wind Power projects are being led by state-owned VietinBank whereby J.P. Morgan has delivered $35 million in July 2021 as part of a $300 million multi-year bank-to-bank reimbursement financing structure. Guaranteed by development banks and investors, the funding will be used to support the imports of wind turbine generators into Vietnam.
"With J.P. Morgan’s support, we have been able to finance this impactful project and help contribute to our government’s ambitious efforts in expanding Vietnam’s renewable energy sources and sustainability agenda," said Ms. Le Minh Huong, Director of VietinBank Trade Finance Center.
In late 2021, J.P. Morgan also delivered close to $30 million in trade loans that are 100 percent guaranteed by the Asian Development Bank, to help the Bank for Investment and Development of Vietnam (BIDV) procure earthing systems and equipment fora wind farm project in the country’s North Central coast region.
These transactions demonstrate J.P. Morgan’s commitment to supporting Vietnam’s ambitious wind power agenda through innovative working capital solutions, and open opportunities to explore other solutions such as export finance agency loans to advance development financing in other developing markets.
“We are pleased to be able to support Vietnam’s growth ambitions, and more importantly to play a part in contributing to long-term clean energy solutions to help advance climate action,” said Jing Zhang, Executive Director for Trade and Working Capital at J.P. Morgan Payments.
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The views and opinions expressed herein are those of the author and do not necessarily reflect the views of J.P. Morgan, its affiliates, or its employees. The information set forth herein has been obtained or derived from sources believed to be reliable. Neither the author nor J.P. Morgan makes any representations or warranties as to the information’s accuracy or completeness. The information contained herein has been provided solely for informational purposes and does not constitute an offer, solicitation, advice or recommendation, to make any investment decisions or purchase any financial instruments, and may not be construed as such
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