- Region: Asia
- Export Loans
March 31, 2015
The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Watanabe) signed today a loan agreement on buyer's credit totaling up to USD409 million (JBIC portion) with Vietnam Electricity (EVN). The loan is cofinanced with Sumitomo Mitsui Banking Corporation (lead arranger), Sumitomo Mitsui Trust Bank, Limited, The Joyo Bank, Ltd., The Gunma Bank, Ltd., The Hyakugo Bank, Ltd., THE HACHIJUNI BANK, LTD.,THE BANK OF FUKUOKA LTD., The Chiba Bank, Ltd., The Iyo Bank Ltd. and The Bank of Kyoto, Ltd., bringing the overall cofinancing amount to USD683 million, with Nippon Export and Investment Insurance (NEXI) providing insurance on the cofinanced portion by the private financial institutions.
The loan is intended to finance EVN's purchase of a whole set of machineries and equipment including steam turbines and generators (manufactured by TOSHIBA CORPORATION) by engineering, procurement and construction ("EPC") basis from SUMITOMO CORPORATION for a super critical coal-fired power plant (688 MW x 1 unit) to be built in the Duyen Hai district, Tra Vinh Province, in the southern part of Vietnam.
In Vietnam, the demand for electricity is growing backed by steady economic growth, and it has become a particularly urgent matter to solve the problem of power shortages in southern Vietnam where this power plant is planned to be built. JBIC is expected to contribute to Vietnam's economic development through steady power supply, as well as contributing to maintaining and strengthening the international competitiveness of Japanese companies through supporting the export of whole sets of machineries and equipment such as steam turbines and generators by Japanese companies.
As Japan's policy-based financial institution, JBIC will continue to financially support the export to and the expansion of business opportunities of Japanese companies in Vietnam, by drawing on its various financial facilities and programs for structuring projects, and performing its risk-assuming function.