Finance package to fund construction of four power transmission projects in the south.
Citi Vietnam on December 5 announced the completion of an Export Credit Agency-supported financing package for the National Power Transmission Corporation (NPT).
The package has two term loan facilities with a total value of $245 million and a tenor of 13 years. The term loan facilities are guaranteed by the Ministry of Finance 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 Limited, Singapore Branch (SMTB). Original lenders are Citibank Japan, SMTB, Shizuoka Bank, Tokyo Star Bank, Bank of Fukuoka, Gunma Bank, and Chiba Bank, Hong Kong Branch. This is the second NEXI- insured financing arranged for NPT, a power transmission company under Electricity of Vietnam (EVN).
The proceeds will be utilized to 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.
“Citi, through its long standing relationship with NPT and it strong collaborative track record with NEXI, has successfully structured a financing package that will support Vietnam’s continued development and growth in the years to come,” said Mr. Dennis Hussey, Managing Director and Citi Country Officer for Vietnam.
Mr. Dang Phan Tuong, Chairman of NPT, said that this second NEXI united facility for NPT, following the first $200 million term loan in 2011, has contributed to NPT’s investment capital. “With the value of annual investments ranging from VND15 trillion to 18 trillion ($714 million to 857 million) in the period of 2014 - 2020, NPT is proactively diversifying capital sources from ODA, export credit, and domestic trade in order to meet the demands of developing the national power grid,” he said.