Electricity of Viet Nam (EVN) said on Monday it received formal registrations from foreign investors to buy 36 per cent charter capital at the Power Generation Corporation 3 (Genco 3).

According to Genco 3’s privatisation roadmap approved by the Government, the deadline for receiving registrations of strategic investors was 11.30pm on January 15.

EVN said it held a roadshow in Singapore last Friday to seek foreign strategic investors who had the financial capability and strength to manage and operate power plants.

According to EVN, 19 regional and global investors such as Ratchaburi, Nebras Power, GS Energy Corporation, Siemens AG, GE Capital, Itochu, China Datang Power, Keppel Infrastructure and Osaka Gas as well as prestigious financial institutions and law firms such as Mizuho and Hogan Novells participated in the event.

The foreign investors were interested in issues pertaining to power purchase agreement, share-selling roadmap to strategic investors, deposits, share price, Genco 3’s development plan in the future and purchasing contracts of gas and coal.

Some of the foreign investors hoped to become Genco 3’s strategic partners and committed to submit their applications before the deadline.

Earlier on January 5, EVN had announced in the media that it was seeking strategic investors for Genco 3.

Genco 3 will put up more than 267 million shares, accounting for 12.8 per cent of its charter capital, for sale in its initial public offering (IPO) in February. The shares will be listed on HCM Stock Exchange, with an initial auction price of VND24,600 (US$1.08) a share.

Genco 3’s charter capital is worth VND20.8 trillion, 51 per cent of which will be owned by EVN. EVN will divest its capital at Genco 3 to less than controlling level after 2019 if EVN and the corporation were successful in restructuring the latter’s debts and negotiating with lenders.

Genco 3 is one of the three power generation corporations under EVN’s management. It has a capacity of 6,304MW, accounting for 16 per cent of the country’s total electricity generation. It has been the strongest unit among EVN’s power generation corporations.

After Saigon Beer, Alcohol and Beverage Corporation, Genco 3 was the second State-owned enterprise that organised a roadshow in Singapore. — VNS