Citi Vietnam has completed an export credit agency-supported financing package arrangement to National Power Transmission Corporation (NPT) for the construction of power transmission projects in the south of Vietnam. The financing package has two term loan facilities with a total value of US$245 million and 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, the agent as well as the joint lead arranger together with Sumitomo Mitsui Trust Bank, Singapore branch (SMTB). Original lenders are Citibank Japan, SMTB, The Shizuoka Bank, The Tokyo Star Bank, The Bank of Fukuoka, The Gunma Bank, and The Chiba Bank, Hong Kong branch.
The proceeds will be utilized to finance the construction of four power transmission projects including: (1) Duyen Hai – My Tho 500kv transmission line, (2) Long Phu – Soc Trang 220kv transmission line (3) Long Phu – Can Tho – Tra Noc 220kv transmission line, and (4) Can Tho 220kv sub-station. These four projects will upload and transmit electricity generated from Long Phu and Duyen Hai power centers to industrial zones in Soc Trang and Hau Giang provinces, as well as Can Tho and Ho Chi Minh cities. This is the second NEXI-insured financing arranged for NPT in Vietnam.
Dang Phan Tuong, chairman of NPT, said: “With the value of annual investments ranging from 15 to 18 trillion Vietnam dong in the period of 2014–2020, EVN NPT is proactively diversifying the capital sources from ODA, export credit and domestic trade in order to meet the demand of developing the national power grid system. This second NEXI’s united facility for NPT, following the first US$200 million term loan in 2011, has partially contribute to NPT’s investment capital. This well reflects the dedication of the government, ministries, NEXI and global banks towards NPT’s power transmission projects.”
