Singapore-based United Overseas Bank (UOB) will finance a power plant in Dong Nai Province with a US$40 million bridge loan.
A bridge loan (also known as caveat loan or a swing loan) is a short-term loan pending arrangement of larger or longer-term financing.
The plant, developed by PetroVietnam Power Nhon Trach 2 Joint Stock Company in partnership with Japanese Electronic Power Development, has a designed capacity of 750 megawatts. Construction began last year and is scheduled to end late next year.
US-based Citibank and France-based Credit Agricole Corporate and Investment have also committed to granting loans of $470 million and 50 million euros respectively for the $600 million project which would use natural gas from offshore oilfields in Ba Ria-Vung Tau Province.
The project is located in the province's Ong Keo Industrial Park.