Citi closed $245 million financing for NPT

The financing package has two term loan facilities with a total value of $245 million and tenor of 13 years. The term loan facilities are guaranteed by the Ministry of Finance of Vietnam and insured by the Japanese Export Credit Agency, Nippon Export and Investment Insurance (NEXI).

Under these facilities, Citi is the sole NEXI coordinator, the agent as well as the joint lead arranger together with Sumitomo Mitsui Trust Bank Limited, Singapore Branch (SMTB). Original lenders are Citibank Japan Ltd., SMTB, the Shizuoka Bank, Ltd., the Tokyo Star Bank, Limited, the Bank of Fukuoka, the Gunma Bank, Ltd. and the Chiba Bank, Ltd., Hong Kong branch.

The proceeds will be utilised to finance the construction of four power transmission projects including Duyen Hai – My Tho 500kV transmission line, Long Phu – Soc Trang 220kV transmission line, Long Phu – Can Tho – Tra Noc 220kV transmission line, and Can Tho 220kV sub-station.

These four projects will upload and transmit electricity generated from Long Phu and Duyen Hai power centres to industrial zones in Soc Trang and Hau Giang provinces, as well as Can Tho and Ho Chi Minh cities. This is the second NEXI-insured financing arranged for NPT in Vietnam.

“Citi is delighted to have had the opportunity to work once again with NPT and NEXI in leading this important transaction with our international bank partners. Over the past 20 years in Vietnam, we have worked on numerous innovative financing transactions, and this is a perfect example of how our international knowledge and local expertise work together perfectly,” Dennis Hussey, Citi country officer for Vietnam, said. “Citi through its long standing relationship with NPT, and it strong collaborative track record with NEXI, has successfully structured a financing package that will support Vietnam’s continued development and growth in the years to come.”

Dang Phan Tuong, chairman of NPT said with the value of annual investments ranging from VND15-18 trillion in the period of 2014 – 2020, NPT was proactively diversifying the capital sources from official development assistance, export credit and domestic trade in order to meet the demand of developing the national power grid system.

“This second NEXI’s united facility for NPT, following the first $200 million term loan in 2011, has partially contribute to NPT’s investment capital. This well reflects the dedication of the government, ministries, NEXI and global banks towards NPT’s power transmission projects,” he said.