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Starting an US$ 170 million loan for power transmission grid investment

Starting an US$ 170 million loan for power transmission grid investment - 

The National Power Transmission Corporation (EVN NPT) has just held a starting ceremony for an unconstrained loan of US$170 million from Nippon Export Investment Insurance (NEXI) for Vinh Tan Power Center – Song May turn – Tan Uyen transmission line investment. It is the result of over a year of active preparation for lending procedures between the sides.

Starting ceremony for an unconstrained loan of US$170 million from Nippon Export Investment Insurance (NEXI).

This long term export credit loan is guaranteed by Ministry of Finance (Vietnam) and insured by NEXI (Japan) with co-financing participation of Japanese Banks, among them the BNP Paribas and Sumitomo Mitsui Trust are dispatchers and arrangers of the loan

Mr. Dang Phan Tuong – the Chairman of EVN NPT Member Council informed: this loan has solved a part of the investment capitals for EVN NPT in 2016 – 2018 period. This is the third unconstrained loan following the first loan of US$ 200 million in 2011 and the second one of US$ 245 million in 2014 from NEXI that express concern of government and ministries of Vietnam and effective coordination of EVN NPT with NEXI and the Japanese banks in arranging investment capitals for the projects of EVN NPT.

“EVN NPT undertakes to mobilize all the resources to ensure completing the project in time with good quality and expects to continuously receive supports from the government, ministries, NEXI and banks in arranging capitals for following projects of EVN NPT”, Mr. Dang Phan Tuong emphasized.

Ms. Mari Oi - General Manager of Commercial Credit and Financial Structure of NEXI considered: This project brings interests to Vietnam via ensuring stable electricity supply for the country. It is also a factor improving business environment for Japanese companies which are taking activities in Vietnam. NEXI prides very much to participate in this significant project.

Ms. Mari Oi informed: the overall level of NEXI insurance commitments until March, 2016 when 2015 Fiscal Year finishing, reached about ¥ 16,000 billion, more than a half of this figure belonged to Asian countries, among them Vietnam was in the top position with about ¥ 1000 billion. The projects in Vietnam that NEXI recently participated in are Vinh Tan 4 and Duyen Hai 3. It is a proof on the respectable economic growth rate of Vietnam and hence, Japanese companies were directed toward Vietnam as an important commercial partner and a destination of the investors. Specially, NEXI has received a lot of requests from the Japanese companies to supply equipment for power sector in Vietnam.

VietnamEnergy.vn

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