Citi Provides Debt Financing to Petrovietnam
HONG KONG - 29 October 2009 – Citi's Export and Agency Finance (EAF), a division of Treasury and Trade Solutions, has been mandated by PetroVietnam Nhon Trach 2 Power Joint Stock Company to arrange agency-supported financing. The landmark transaction relies heavily on Citi's EAF relationships with export credit agencies and official agencies. The deal was also secured with the support of Citi's unrivalled on-the-ground experience in Vietnam.
The transaction will cover a debt financing arrangement for its 750MW gas-fired combined cycle power project in Vietnam. PetroVietnam Nhon Trach 2 Power Joint Stock Company is responsible for the construction, ownership, and operation of the Nhon Trach 2 Power Plant in Dong Nai Province, Vietnam. PetroVietnam Nhon Trach 2 Power Joint Stock Company is a subsidiary of the Vietnam Oil and Gas Group (PetroVietnam).
The Nhon Trach 2 power plant is a project of national importance, featuring in the Vietnam Electricity Master Plan No VI. Active construction at site is currently being undertaken to cope with the tight schedule for the first synchronization of open-cycle operation in March 2011.
The transaction builds on Citi's existing strength in Vietnam in providing financing to the country's most visible infrastructure projects. Specifically, this latest deal builds on several milestone transactions for Citi's EAF business in this market from the energy and transportation sectors.
Citi's EAF products serve banks, corporations, and development agencies, primarily in emerging markets in Africa, Latin America, the Middle East, and Asia Pacific, and help to address infrastructure development needs in a variety of sectors, including oil and gas, power, shipping, housing, and energy. Citi has partnered with more than 60 Export Credit Agencies (ECAs), including Ex-Im in the U.S., and Multilateral Finance Institutions (MFIs), lending our global reach to support these institutions' capabilities in many challenging regions of the world.
Brett Krause, Managing Director, Citi Country Officer for Vietnam, said "We are very honored to be selected by PetroVietnam - NHONTRACH 2 POWER JSC to bring this kind of innovative export agency financing solution to Vietnam. In the wake of the global economic crisis, we can see increased interest among investors and financial institutions to support this kind of critical infrastructure in Vietnam."
Sumanta Panigrahi, Director, Regional Head of Export and Agency Finance, Asia Pacific, Citi, said: "The economy of Vietnam is developing rapidly and has attracted significant interest from wide-ranging financing agencies and organizations. We are proud to partner with PetroVietnam Nhon Trach 2 Power Joint Stock Company and provide them with the experience and relationships our EAF business is renowned for."
Citi, the leading global financial services company, has approximately 200 million customer accounts and does business in more than 140 countries. Through its two operating units, Citicorp and Citi Holdings, Citi provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, and wealth management. Additional information may be found at www.citigroup.com or www.citi.com.
Citi in Vietnam
Citi is the leading foreign bank in Vietnam with branches in Hanoi and Ho Chi Minh City and a nationwide partnership network that covers all of Vietnam's 64 provinces. Citi offers a wide range of banking services in Vietnam including Corporate Banking, Investment Banking and Global Transaction Services, including Trade and Treasury Services, and Securities and Fund Services.
Citi combines its global presence and resources along with a large local footprint to offer innovative solutions to meet the evolving needs of our clients both in Vietnam and those looking to invest in Vietnam.
Citi has made a long-term commitment to Vietnam and has played a key role in assisting in the development of Vietnam's financial markets. Citi was the first US financial institution to receive a branch license and the first US bank to open a full branch in Hanoi in 1994.