EVN banned from investment in property, finance and securities

August 28, 2014 | 09:10

(0) user say

The government has issued a regulation on financial management for Vietnam Electricity Group (EVN), banning the group from investing in certain of non-core areas, such as real estate, finance and securities.

Illustrative photo.VN banned from investment in property, finance and securities

According to the regulation, EVN is allowed to use not only state-owned capital, but other forms of capital for investment, except for the areas of real estate, finance, securities and insurance. The group must also take full responsibilities for its investments, accounting for their returns and repayment of all loans and interest.

The company will also be permitted to mobilise capital by issuing bonds, treasury bills, bills of exchange and taking out loans.

EVN will be allowed to use its own capital for a number of non-core investment areas, but only with government approval. In particular, the group must ensure efficiency in its use of capital and the investment must not affect the core operations of EVN.

According to the regulation, EVN will not be permitted to use capital contributed by affiliates for investment.

Wholly-owned subsidiaries of EVN will also be banned from contributing capital for buying stakes in EVN after they are privatised.

EVN is seeking the government’s permission to prioritise the use of government bonds and ODA for its electricity projects and guarantees on foreign loans.

Between 2011 and 2025, EVN is estimated to have used VND501.47 trillion (USD23.8 billion) for investment activities.

Dtinews

What the stars mean:

★ Poor ★ ★ Promising ★★★ Good ★★★★ Very good ★★★★★ Exceptional