PVPower signs a US$1.4 billion deal for natural gas power project

Wednesday, Oct 06, 2021 17:55

PVPower, Techcombank and MB signed a deal to arrange a loan US$1.4 billion loan for two liquefied natural gas (LNG) projects. — Photo courtesy of Techcombank

PVPower signed a deal to allow Techcombank and MB banks to arrange US$1.4 billion of syndicated loans for two liquefied natural gas (LNG) projects on Wednesday.

This is the first gas-fired power project on the market using capital for PVPower without a Government guarantee.

The funds will be used for the construction of the Nhon Trach 3 and 4 plants which are the largest LNG projects in Viet Nam. The plants will have a total capacity of 1,500MW. They are expected to bring clean energy to international standards and create a turning point for national energy security policies. The two power plants play the role of load centres for the South, HCM City, Dong Nai and Ba Ria – Vung Tau.

PVPower chose Techcombank as the main bank to assist in the development of bidding documents, negotiation of export credit agency (ECA) loan conditions, offshore loans, and management of foreign loans. The participation of Techcombank and MB will help PVPower be proactive in credit sources, reducing the burden of the State's public debt in national energy development.

Nguyen Duy Giang, Deputy General Director of PVPower, said: “LNG is the optimal energy source for Viet Nam to move towards large-scale clean energy, ensuring national energy security, as well as towards an environment without smog for future generations. With the support of capital arrangement from Techcombank and MB, the two projects are expected to mark a major turning point for the national energy policy, contributing to the sustainable development of the country.”

“As the main partner bank supporting capital arrangement for important energy projects Nhon Trach 3 and Nhon Trach 4, we are committed to doing our utmost to support PVPower in successfully implementing these important projects, through determining the most suitable financial options,” said Phan Thi Thanh Binh – Head of Techcombank Wholesale Banking.

PVPower and Techcombank had successfully co-operated in the Nhon Trach 2 Power Plant project in 2010, making NT2 stock become a Blue Chip stock on HOSE.

Pham Nhu Anh, a member of MB's Executive Board said: “MB is very proud to be selected by PVPower to join Techcombank in this project. In recent years, MB has analysed and found that clean energy and energy creation is a high priority for the country. Accordingly, MB has spent about $3 billion on key projects in wind and solar power. MB is ready to commit to Techcombank to assist in arranging capital, and at the same time, coordinate with domestic and international partners to find the best solution to help the design of this project be close to the priority. MB believes that the project will be completed on schedule with the best quality, contributing to opening an environment-friendly energy development direction.” — VNS

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