- Region: Asia
- Machinery and Equipment
- Export Loans
August 22, 2013
- The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Okuda) signed today, a buyer's credit (export loan) agreement totaling up to approximately 85 million U.S. dollars (JBIC portion) with the Vietnam Oil and Gas Group (Petrovietnam). The loan is cofinanced with The Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU; lead arranger), Mizuho Bank, Ltd. (MHBK) and Citibank Japan Ltd. (Citi), which brings the overall cofinancing amount to approximately 141 million U.S. dollars.*1
- This loan is intended to finance the procurement of steam turbines and related machinery and equipment as a whole from a consortium of Sojitz Corporation and Daelim Industrial Co., Ltd. in Korea, as Petrovietnam will build a coal-fired thermal power plant (600 MW×2 units) in Thai Binh Province located in the Northern Region of the Socialist Republic of Vietnam.
- In Vietnam, demand for electricity has been increasing sharply against the backdrop of robust economic growth. However, the construction of power plants has lagged behind increasing demand, which has resulted in tight power supply. To address this situation, the Vietnamese government placed national priority on the expansion of power supply capacity in the Seventh National Power Development Master Plan. Under this Plan, it has been pushing forward the construction of power plants that make effective use of the country's own resources. To achieve goals in the Master Plan, Petrovietnam, a major state-owned corporate group, has been constructing multiple power plants, including the one in this project. These efforts are expected to help not only the country's economic development with a stable supply of electricity, but also business activities of local Japanese affiliates.
- As a public institution, JBIC will continue to support the expansion of exports of Japanese companies to Vietnam as well as opportunities for Japanese companies to participate in the country's projects by drawing on its various financial facilities and schemes for structuring projects, and performing its risk-assuming function.
- *1 Nippon Export and Investment Insurance (NEXI) will provide Buyer's Credit Insurance for the portion co-financed by BTMU, MHBK and Citi.