HD bank reserves 7,000 billion VND to finance the solar power projects

HD bank reserves 7,000 billion VND to finance the solar power projects - 

Ho Chi Minh City Development Bank (HD Bank) has implemented a financing program for the solar power projects with a total capital of 7,000 billion VND until 2020.

Accordingly, HD Bank will prioritize projects in the solar power development plan additionally approved into the national power development planning up to 2020, specially the projects capable to be connected with the national power system before 30/6/2019.

For the projects in Ninh Thuan province, HD Bank will give priority to projects with the large designed capacity, approved by the Government and capable to be connect before 31/12/2020.

The condition for borrowing capital of HD Bank is that the customers must have equity of 150 billion VND up and participate in the project at least 30% of the total investment capital.

HD Bank also requires investors to transfer all revenue from the project to the customer's account at HD Bank. HD Bank will lend the investors of solar power projects at maximum up to 70% of total investment value of the project with the duration not exceeding 12 years to supplement or compensate the investment capitals for project cóntruction.

In order to secure the loan, HD Bank requires customers to sign a bilateral mortgage agreement for the security property as the solar power plant, including the rights arising from land lease agreements and property formed in the future on land on land ...

The project owner also has to sign a bilateral mortgage agreement with the bank for security property arising from power purchase agreement between customers and the Electricity of Vietnam (EVN).

In addition, HD Bank also sponsors the contractors involved in the construction of solar power projects in Vietnam.

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