EVN Readies Next Big Bond Issuance

Hoa Binh Hydro Power Plant

Electricity of Viet Nam (EVN) on Dec. 19 will issue its eighth tranche of debentures this year.

"EVN will have to invest 250 trillion VND (15.63 billion USD) between 2006-10 to construct new electricity generating facilities, which represent 70 percent of the company's total investment capital over the next few years," said Dinh Quang Tri, EVN deputy general director. "EVN will mobilise the capital primarily through bonds."

The company will issue 1 trillion VND (62.5 million USD) worth of ten-year bonds carrying coupon rate of 9.8 percent. Twenty percent of the bonds will be sold to individuals, with the rest going to large-scale enterprises.

An Binh Securities Co., Ltd and Hong Kong-Shanghai Banking Corporation (HSBC) have been selected as underwriters.

EVN executives recently proposed a plan to the Ministry of Finance to list shares on a foreign stock exchange to raise about 150 million USD.

The company also plans to equitise three electricity companies and five power generating factories next year. The state plans to maintain a 51 percent stake in the subsidiaries after equitisation.

Source: VNA

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