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The banks Citi and ING Germany have been working alongside export credit agencies Korea Trade Insurance Corporation (K-SURE) and Swiss Export Risk Insurance (SERV). In collaboration, they have successfully closed a $521.5 million, 12-year supported financing loan for Petrovietnam Power Corporation (PV Power).
The financing package is earmarked for the completion of PV Power’s Nhon Trach 3 and 4 power plants, set to become Vietnam’s pioneering liquefied natural gas (LNG) to electricity facilities.
The two plants, situated in the southern Dong Nai province, are projected to contribute 1,624 MW of capacity to Vietnam’s electricity grid, playing a pivotal role in bolstering the country’s energy security.
Citi and ING served as Joint Coordinators and Joint-Mandated Lead Arrangers; additionally, Citi took on the role of K-SURE Agent, while ING acted as SERV Agent.
PetroVietnam Corporation CFO Nguyen Duy Giang expressed gratitude for the support, saying, “Nhon Trach 3 and 4 Power Plants are key national projects and will help meet the growing demand for power in the country. The projects will open a new chapter in the formation and development of the LNG project chain in Vietnam.”
Michiel de Vries, ING’s global head of Structured Export Finance, expressed optimism about future cooperation potential with European ECAs in Vietnam and the broader Asian market.
De Vries noted, “ING as SERV Agent could jointly arrange SERV cover for about $291.5 million of PV Power’s total long-term ECA covered financing.”
The successful closure of this financing comes as Citi Vietnam celebrates its 30th anniversary in the country. Citi has been collaborating with PV Power since 2020, including a previous $300 million short-term loan.
Projects like Nhon Trach 3 and 4 mark a Vietnamese effort to balance its rapidly growing energy demands with environmental considerations. Financial institutions continue to play an essential role in supporting clean energy developments internationally.
