Nam Dinh 1 debt signing imminent
ACWA Power and Taekwang Power are expected to sign a $1.9 billion Sinosure-backed loan next week to finance construction of the $2.52 billion 1.2GW Nam Dinh 1 coal-fired power plant in Vietnam. Financial close is targeted for the beginning of 2020.
The 20-year debt will be provided by a consortium of Chinese banks led by Bank of China – including Agricultural Bank of China, China Construction Bank, China Development Bank, China Export-Import Bank, China Minsheng Bank and ICBC. Bank of China will provide $1.1 billion to the debt package, while Sinosure will cover the Chinese bank portion with a 95% guarantee. The uncovered portion is expected to be put up by international banks. Shearman and Sterling is legal counsel to the sponsors.
The project, which originally involved K-Sure and Kexim, with Mizhuo as financial adviser (no financial adviser has been retained), was initially targeted for full financial close in April 2017.
