Nhon Trach 2 ECA financing completed

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26 July 2010

Sole MLA Citi has finalised the export credit agency supported financing of PetroVietnam’s Nhon Trach 2 combined cycle power plant project – the largest ECA facility ever arranged in Vietnam.

Citi Vietnam has completed the export credit agency-supported debt financing arrangement of the 750MW PetroVietnam Nhon Trach 2 combined cycle power plant project in Vietnam. The debt financing was arranged by Citi’s Export and Agency Finance division (EAF), part of the bank’s Global Transaction Services unit.

As sole mandated lead arranger, EAF teams located in Frankfurt, Hong Kong, Tokyo and Singapore, worked on the $470 million equivalent facility (available in US dollars and euros). This landmark transaction represents the largest ECA-backed financing deal ever arranged in Vietnam.

The 12-year financing is guaranteed by Vietnam’s Ministry of Finance and insured by the German ECA Euler Hermes and Japan’s Nippon Export and Investment Insurance (Nexi). The Hermes-supported loan is circa $295 million equivalent, including both a...

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Poll

Will Russia’s recent ban on grain exports result in a significant rise in private risk insurance claims from grain traders unable to fulfil their contracts?

Yes – there will be more claims. The government’s actions allow traders, with PRI cover, to make claims through contract frustration.

No - the majority of Russia’s wheat production, some 70%-80%, is used for domestic consumption so the contracts represent only a small portion of the total wheat market, limiting the amount of potential claims.

23%

No - traders had a week’s notice before the ban allowing them to secure alternative supplies to fulfil contracts stated as optional origin.

23%

Maybe - but claims are likely to be limited to traders dealing in soft wheat whose contracts demand they source wheat only from Russia.

46%