This is an unsecured loan guarantee transaction by the Italian Export Credit Insurance Agency (SACE) between the GELEX Group, GELEX Infrastructure JSC, GELEX Energy JSC, and the consortium of two banks, HSBC and LBBW.
In this transaction, the Hong Kong and Shanghai Banking Corporation (HSBC) – Singapore and Vietnam branches, and the Landesbank Baden-Württemberg (LBBW) act as the mandated lead arrangers, both being prominent names in global trade and project finance.
Additionally, HSBC is the sole ECA loan coordinator, facility and guarantee agent, and account bank, while LBBW is the co-lender. Accompanying them is SACE, the world’s third-largest export credit agency, with stringent underwriting standards, guaranteeing up to 80% of the loan.
At the announcement ceremony held in Hanoi on May 29, Mr. Nguyen Trong Hien, Chairman of the Board of Directors of GELEX Group, shared that this fundraising initiative marks the beginning of their strategy to raise international capital to achieve long-term, efficient, and sustainable growth for the GELEX Group.
“We always strive for international standards in financial management and investment. This financial transaction not only provides crucial resources for GELEX’s strategic projects but also demonstrates the confidence of global financial institutions in the capabilities and sustainable development choices of Vietnamese enterprises,” affirmed the Chairman.
The loan will be utilized for GELEX’s strategic objectives, including investments in core business expansion and acceleration of governance digitization.
Unlocking Trade Potential Along the Asia-Pacific Corridor: Vietnam’s Entry into the CPTPP
With the United Kingdom’s accession, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) has officially reached 12 members, accounting for approximately 15% of global GDP. This marks a turning point in international trade relations, offering extensive cooperation opportunities for member economies, including Vietnam.
“The Future of Eximbank: A Transformative Meeting”
The recent developments at Eximbank come amidst a change in its largest shareholder. CTCP Group has acquired 174.7 million EIB shares, equivalent to a 10% stake in the bank, making it the new dominant player in Eximbank’s shareholder landscape.
“Eximbank Denies Receiving SBV’s Decision on Inspection of Lending Activities”
Eximbank has stated that it has not received any communication from the State Bank of Vietnam (SBV) regarding a potential inspection of the bank’s recent credit activities.
A Bright Financial Picture for GELEX
Over the past five years, GELEX has consistently turned a profit, and its scale has witnessed a significant surge, earning its place among the top 30 highest-revenue companies on the stock exchange.
“GELEX Ranks in the Top 50 Most Profitable Enterprises in Vietnam for 2024”
For the fifth consecutive year, GELEX has secured its position in this prestigious ranking, a testament to its sustained and robust business performance. This achievement underscores the company’s consistent excellence and resilience in a dynamic market landscape.
