HSBC Bank (Vietnam) Ltd. and Malaysia’s Leader Energy Holding Berhad have signed a VND593b ($23.13m) financing agreement for the development of the latter’s solar project in Vietnam.

In a statement, HSBC said it acted as the sole lender of the seven-year committed term loan, which will be used to refinance Vinh Hao 6 (VH6), a 50-megawatt (MW) solar power plant fully acquired by Leader Energy in 2023.

VH6 is located in Binh Thuan province, and started its commercial operation in 2019. It generates 83,000 megawatt-hours of electricity, offsetting 75,131 tonnes of carbon dioxide emissions annually.

This Vietnam deal is the second between the bank and Leader Energy, following a financing of a hydropower plant in 2017.

“Contributing to the energy transition is a key component of Leader Energy’s strategy to mitigate climate change and promote sustainable development. The group is expanding its renewable energy portfolio to fulfil its commitment to achieving net zero greenhouse gas emissions by 2050,” said Jenny Ng, group chief financial officer at Leader Energy.

Leader Energy is targeting over 500MW of renewable energy assets in Vietnam.