Citi finalizes Vietnam power plant financing

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US bank Citi has approved a US$470 million financing agreement for the Nhon Trach 2 power plant in the south of Vietnam.

The 12-year debt financing was arranged by the Export and Agency Finance Division, which is part of Citi's Global Transaction Services. The agreement represents the largest deal that the division has ever arranged in Vietnam, the bank said in a statement.

The bank announced that the funds will be used for financing deliveries and service for the construction of a 750-megawatt Nhon Trach 2 gas-fired combined cycle power plan located at PetroVietnam's Nhon Trach Thermal Power Center in Dong Nai Province.

Brett Krause, Citi Country Officer for Vietnam, called the financing agreement a "landmark deal" in the relationship between Citi Vietnam and the state-owned oil and gas group, PetroVietnam.

"We look forward to future cooperation opportunities to help support and raise capital for Vietnam's rapidly expanding energy sector," he said.

According to PetroVietnam, the power plant is set to begin operations in March 2011 and contribute towards meeting the country's increasing power demands.

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