Citi Vietnam on December 5 announced the completion of an Export Credit Agency-supported financing package for the National Power Transmission Corporation ("NPT") for the construction of power transmission projects in the south of Vietnam.
|Citi Vietnam yesterday announced the completion of a financing package for the National Power Transmission Corporation for the construction of power transmission projects in the south of Viet Nam. (Photo: Citi Vietnam)|
The US$ 245 million financing package has two term loan facilities with a tenor of 13 years.
The term loan facilities are guaranteed by the Ministry of Finance of Vietnam and insured by the Japanese Export Credit Agency, Nippon Export and Investment Insurance (NEXI). Under these facilities, Citi is the Sole NEXI Coordinator, Agent and Joint Lead Arranger together with Sumitomo Mitsui Trust Bank Limited, Singapore Branch ("SMTB"). The original lenders are Citibank Japan Ltd., SMTB, The Shizuoka Bank, Ltd., The Tokyo Star Bank, Limited, The Bank of Fukuoka, The Gunma Bank, Ltd. and The Chiba Bank, Ltd., Hong Kong Branch.
The loan, which follows another US$ 200 million term loan in 2011, will finance the construction of four power transmission projects: the Duyen Hai – My Tho 500kV transmission line, the Long Phu – Soc Trang 220kV transmission line, the Long Phu – Can Tho – Tra Noc 220kV transmission line, and the Can Tho 220kV sub-station. This system will transmit electricity generated in Long Phu and Duyen Hai power centres to industrial zones in Soc Trang and Hau Giang provinces, as well as Can Tho and HCM City.
"With annual investments ranging from VND15 to 18 trillion in the 2014-2020 period, EVN NPT is proactively diversifying capital sources from ODA, export credit and domestic trade in order to meet the demand of developing the national power grid system," said NPT Chairman Dang Phan Tuong.
Dennis Hussey, Managing Director and Citi Country Officer for Vietnam, said, "Over the past 20 years in Vietnam, we have worked on numerous innovative financing transactions, and this is a perfect example of how our international knowledge and local expertise work together perfectly.