Natixis CIB and AIIB USD95m Refinancing for Dakdrinh Hydropower
On December 14th, Dakdrinh Hydropower Joint Stock Company (PV Power DHC), a majority-owned subsidiary of PetroVietnam Power Corporation (PV Power), signed a USD95 million refinancing loan, jointly structured by Natixis CIB and the Asian Infrastructure Investment Bank (AIIB), involving an AIIB A/B loan of up to USD 95 million, with an A Loan facility for AIIB's own account in the amount of USD 47.5 million and B-loan of USD 47.5 million provided by Natixis CIB.
The funds will be used to refinance existing debt on Dakdrinh Hydropower’s 125MW hydropower plant, which has been operational since 2014 and is located in the Quang Ngai and Kon Tum provinces of Vietnam.
The refinancing comes with strong ESG commitments, based on guidelines set out by AIIB and Natixis CIB. An Environmental and Social Corrective Action Plan has been prepared to guide the implementation of a series of measures, and to provide for monitoring and supervision of their implementation. These measures are in line with PV Power’s philosophy of sustainable business development.
The agreement of all parties on the principles of the refinancing demonstrates the beginning of a strong relationship between AIIB, Natixis CIB and PV Power, and for future investment activities in Vietnam.
Vietnam’s Prime Minister, Pham Minh Chinh, recently committed to bring the country’s net emissions to zero by 2050. at the United Nations Climate Change Conference (COP26).
Kwong-Wing Law, Head of Infrastructure and Energy Finance Asia Pacific, said: “We are delighted to be supporting Dakdrinh Hydropower with this refinancing. With the Vietnam’s commitments to carbon reduction initiatives, but demand for power in the country still growing, reliable and sustainable energy sources will play a key role in the development of the energy market.”
The Asian Infrastructure Investment Bank (AIIB) is a multilateral development bank whose mission is financing the Infrastructure for Tomorrow—infrastructure with sustainability at its core. It began operations in Beijing in January 2016 and has since grown to 104 approved members worldwide. It is capitalized at USD100 billion and Triple-A-rated by the major international credit rating agencies. Working with partners, AIIB meets clients’ needs by unlocking new capital and investing in infrastructure that is green, technology-enabled and promotes regional connectivity.
About PV Power
Founded in 2007 and listed in the Ho Chi Minh Stock Exchange in Vietnam, PV Power is an independent power producer that engages in the electricity generation, transmission, and distribution business in Vietnam. It is 79.94% owned by the Government of Vietnam through its parent company, Vietnam Oil and Gas Group (“PVN”). The company’s main business is the generation of electricity from hydro power plants and thermal power plants with gas and coal.PV Power currently owns and operates a 4.2GW power portfolio, accounting for 8% of the total installed capacity in Vietnam. Fitch Ratings has assigned PV Power a rating of 'BB' with a positive outlook.