Techcombank and MB to facilitate syndicated loan package for Nhon Trach 3 and 4

October 08, 2021 | 13:51
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Techcombank and MB have just announced they would facilitate a $1.4 billion syndicated loan package for the Nhon Trach 3 and 4 liquefied natural gas (LNG) projects, which are backed by state-owned PetroVietnam Power Corporation (PV Power).
Techcombank and MB to facilitate syndicated loan package for Nhon Trach 3 and 4
Techcombank and MB would facilitate $1.4 billion syndicated loan package for Nhon Trach 3 and Nhon Trach 4 LNG projects, which are backed by state-owned PV Power

Nhon Trach 3 and 4 are the first two LNG projects that PV Power arranges capital on its own, without the guarantee of THE Vietnamese government, with a combined capacity of 1,300-1,760MW.

Techcombank and MB have become the mandate lead arranger of a consortium, supporting bidding procedures, offshore loans, export credit agencies, asset management, among others. Previously, these two banks have assisted PV Power in a number of projects, including Nhon Trach 2 Power Plant, Dakđrinh Hydropower JSC, Hua Na Hydropower JSC.

The project has a scale of nearly 54 hectares. Expected commercial operation in the fourth quarter of 2023 for Nhon Trach 3 and Nhon Trach 4 factories is the fourth quarter of 2024. According to the project plan, the project will use LNG imported from Thi Vai LNG terminal, consuming about 1.4 million tonnes of LNG annually and the backup fuel is Diesel oil.

“PV Power expects the vast expertise of Techcombank and MB, as the two leading commercial lenders, would smooth the path for PV Power to be proactive in credit sources, as well as reduce the state budget burden in national energy development route,” said Nguyen Duy Giang, deputy general director of PV Power. "LNG is the optimal energy source for Vietnam to move towards large-scale clean energy and ensuring national energy security. With the assistance from Techcombank and MB, the Nhon Trach 3 and 4 projects are expected to mark a significant milestone for the national energy policy, contributing to creating for the sustainable development of the country."

As a customer-centric bank, Techcombank has always pioneered to bring the best and most comprehensive financial solutions to individual and corporate clients.

“As the major banking partner to assist in arranging capital for important energy projects Nhon Trach 3 and 4, we are committed to making our best efforts to support PV Power to successfully develop this important project through implementing the most eligible financial options,” said Phan Thi Thanh Binh, head of Techcombank's Wholesale Banking Division.

Pham Nhu Anh, member of the Board of Management at MB said, “Clean and sustainable energy has always been a strategic focus for MB. With this collaboration with Techcombank and PV Power, we will make great strides to bring the best-of-its-kind financial services to contribute to the country’s energy development.”

Nhon Trach 3 and 4 are set to be built in Ong Keo Industrial Park in Dong Nai province. With its favourable location and the solid infrastructure of the Southern Key Economic Zone, the province of Dong Nai has become the focus of attention of property developers for years.

By Tri Lam

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