Société Générale’s guarantees for Xinjiang Goldwind’s wind turbines project at Vietnam’s Khai Long - Bac Lieu Wind Power Plant
Many Chinese green companies find it hard to finance their overseas Belt and Road projects, even with the guarantee of their parent firms.
This is because their parent companies are registered and located in mainland China but they often hope to directly secure funding overseas.
The location mismatch complicates funding.
In December 2019, Societe Generale provided advance payment and performance guarantees for Xinjiang Goldwind’s wind turbines project at Vietnam’s Khai Long-Bac Lieu Wind Power Plant.
The French bank has been keen to serve Chinese companies along the new Silk Road.
It also signed on to the Green Investment Principles for the Belt and Road jointly developed by the City of London Green Finance Initiative and the Chinese Green Finance Committee.
The relationship between SocGen and Goldwind goes back many years.
In 2015, the bank acted as one of the joint global coordinators on the company’s $300 million green bond, which was the first green bond by a Chinese issuer.