PV Power announces $521.5 million facility agreements for Nhon Trach 3-4 Power Plant Project

The signing ceremony took place on October 1 in Hanoi. The Nhon Trach 3 and 4 Power Plant Project is the first LNG power plant project in the nation and will be crucial to the country's energy transition. It has nearly US$1.4 billion in total investment, with a 25/75% equity/loan structure.

As per the statement made by Hoang Van Quang, chairman of the PV Power's Board of Directors, the corporation has identified the gas-fired power industry as its primary development orientation as part of its long-term development strategy. In addition, it has selected appropriate clean and renewable energy projects for development in line with the Government's Net Zero by 2050 goal and international trends.

Photo: An overview of the ceremony

The development of PV Power in general and the investment into the Nhon Trach 3 and 4 Power Plant Project in particular has consistently received active support from domestic and foreign banks, financial institutions, and export credit agencies. Most notably, ING and Citi banks have worked closely together as a banking consortium to co-ordinate ECA loans through two export credit agencies, KSURE of the Republic of Korea and SERV of Switzerland.

Photo: Chairman of the PV Power's Board of Directors Hoang Van Quang affirms that the credit contract is of great significance to the Nhon Trach 3 and 4 Power Plant Project.

In order to finance the Nhon Trach 3 and 4 Power Plant Project, PV Power has so far signed credit agreements such as a US$200 million SMBC/SACE loan on March 31, 2023; a VND4,000 billion VCB loan on September 26, 2023; and facility agreements worth US$521.5 million with a consortium of two banks, Citi and ING, insured by KSURE and SERV.

According Mr Quang, the facility agreements are worth US$521.5 million with the consortium of two banks, Citi and ING, and are insured by KSURE and SERV. They are the largest loan used to finance the Nhon Trach 3 and 4 Power Plant Project. This loan is of special significance to PV Power in order to guarantee the project's advancement and quality, as well as its early commercialization, which in turn will help to stabilize the national power system and to ensure the project's overall progress.

Photo: Ramachandran As, director general of Citi Bank Vietnam, speaks at the ceremony.

Photo: Lukas Strauch, director in the Structured Export Finance team at ING Bank, delivers a speech at the ceremony.

Photo: Jaeyong Jung, deputy general director of KSURE, addresses the event.

Sponsors and insurers for the Nhon Trach 3 and 4 Power Plant Project reaffirmed at the event that the announcement of the US$521.5 million credit contract can be viewed as a testament to the extraordinary efforts of all parties involved, highlighting the strength of strong co-operative relationships with shared goals. They also praised PV Power on the project's steadily improving construction progress at the same time. Additionally, they conveyed their optimism that the project will help to guarantee energy security in the nation, further facilitate the country's energy transition away from coal-based energy, and generate substantial economic benefits for Vietnamese companies and citizens.

Photo: Duong Manh Son, deputy general director of Petrovietnam, speaks at the ceremony.

Duong Manh Son, deputy general director of Petrovietnam, spoke on behalf of the firm’s leaders to emphasize that the group and its member companies have been successfully implementing significant investment projects, such as the Nhon Trach 3 and 4 Power Plant Project of PV Power. Petrovietnam therefore plays a vital role in ensuring national energy security and significantly contributes to the State budget revenue and socio-economic development of the nation. Some of the world's top export credit agencies like KSURE and SERV, as well as banks like Citi and ING, have helped this project to reach significant milestones and be where it is now through their support, sharing, and engagement.

Photo: Announcing the US$521.5 million facility agreements between PV Power and the Citi and ING banks

Mr Son stressed that the announcement ceremony for the US$521,5 Million facility agreements between PV Power and the consortium led by Citi and ING covered by K-Sure and Serv to finance the project represent a significant turning point PVN’s relationship with Citibank and ING in general, as well as PV Power and the two banks' consortium in particular. He hoped that Citibank and ING will continue to provide credit financing for PVN’s projects and business activities, as well as those of its subsidiaries, in the future.

Photo: PV Power leaders present souvenirs to representatives of sponsors and insurers for Nhon Trach 3 and 4 Power Plant Project.

PVN leaders have also requested that PV Power make efficient use of loans from Citibank and ING, as well as other banks, including the VND4 trillion loan from Vietcombank and the SMBC loan guaranteed by SACE.