The signing ceremony took place on August 29 in Hanoi and was attended by Le Manh Hung, general director of Petrovietnam, Nguyen Van Mau, member of PetroVietnam’s Board of Directors, Duong Manh Son, deputy general director of PetroVietnam, Hoang Van Quang, chairman of the Board of Directors of PV Power, Le Nhu Linh, general director of PV Power, and Ho Cong Ky, director of PetrovVetnam Power Generation Branch. Representing Vietcombank was Nguyen Thanh Tung, chairman of the Board of Directors, along with Pham Quang Dung, general director.
Photo: Leaders of both sides at the ceremony
The medium-and long-term financing agreement between PV Power and Vietcombank is for VND 4,000 billion, with this being used to fund the construction of the Nhon Trach 3 and Nhon Trach 4 power plants.
Photo: Le Manh Hung, general director of PetroVietnam, speaks at the event
Mr Hung, in the role of general director of PetroVietnam, reaffirmed the sound relationship that exists between the two parties over the years, noting that Vietcombank has always accompanied PetroVietnam's growth. Indeed, the group has played an important role in the country's energy security and economic development. At present, the group's current priorities are investing in and developing power projects in line with the energy transition's trend and the Prime Minister's commitment at COP26. Among the projects were the Nhon Trach 3 and Nhon Trach 4 power plants, which had a combined investment of US$1.4 billion and a 1,620 MW capacity in Nhon Trach district in the southern province of Dong Nai, both of which are expected to start operating around 2024 or 2025.
He went on to outline his belief that the Nhon Trach 3 and Nhon Trach 4 power plants will succeed, ultimately living up to Vietcombank's expectations, whilst the two parties will continue to foster long-term collaboration in a variety of additional projects. He also underlined his dedication to creating the perfect conditions for PV Power to execute the project effectively.
Photo: Pham Quang Dung, chairman of Vietcombank’s Board of Directors, delivers a keynote speech at the event
Mr Dung affirmed that the signing ceremony of a medium-and long-term credit contract worth VND4,000 billion between Vietcombank and PV Power is a crucial step in the concretization of the strategic bilateral co-operation relations. He promised to make every effort to support credit and work alongside PV Power and PetroVietnam during future initiatives.
Photo: Deputy general director of PetroVietnam, Hoang Van Quang addresses the event
Since 2018, PV Power has been getting ready to raise money for the Nhon Trach 3 and Nhon Trach 4 Power Plants. As one of the largest joint stock banks in the nation, Vietcombank has already submitted a letter of interest in the early stages of the project. When PV Power contacted domestic banks in 2022 with a financial offer to request funding for the project, the bank responded with the most affordable pricing, thereby demonstrating its resolve and generosity.
Photo: Leaders of Petrovietnam, PV Power, and Vietcombank attend and witness the signing ceremony.
According to Mr Quang, both sides have come to an agreement to sign a credit contract after undergoing an appraisal process and negotiating loan terms in light of the ongoing changes to financial rules and markets. They are therefore committed to a lengthy partnership with the project, assuring its safe and successful operation and fully repaying the loan to sponsors, with a repayment duration of 13 years, including a three-year grace period.
Currently, PV Power has also been working with project sponsors from foreign capital such as SMBC, ING, and Citibank, as well as export credit guarantee and insurance institutions to secure funding for the project.
Previously, Vietcombank was recognised as a partner bank that worked alongside PetroVietnam on a number of significant projects, including the Ca Mau 1 Power Plant, Dung Quat Oil Refinery, Song Hau 1 Thermal Power Plant, Nam Con Son 2 Gas Pipeline (phase 2), Sao Vang - Dai Nguyet Gas Pipeline, and Su Tu Trang Oil Field in the Phase 2A.
