Vietnam / Loan Insurance for Expansion of Vinh Tan 4 Ultra-supercritical Coal Fired Power Plant
Nippon Export and Investment Insurance
Nippon Export and Investment Insurance (NEXI) has decided to provide insurance for loans extended by a commercial bank for an expansion project of ultra-supercritical1 coal fired power plant (600MW) implemented by Vietnam Electricity (EVN) in Binh Thuan Province of Vietnam.
Under the project, Mitsubishi Corporation has been awarded an EPC contract jointly with a Korean contractor Doosan Heavy Industries and Construction. Mitsubishi will supply main equipment including steam turbine and generator manufactured by Toshiba Corporation. To purchase such equipment, EVN will borrow funds from Japan Bank for International Cooperation (JBIC) and The Bank of Tokyo-Mitsubishi UFJ (BTMU). NEXI’s insurance will support BTMU’s loans.
As Japan’s official export credit agency, NEXI will continue to actively support Japanese overseas business.
|Borrower||Vietnam Electricity (“EVN”)|
|Insured (Lender)||The Bank of Tokyo-Mitsubishi UFJ, Ltd.|
|Insurable Value||Approx. USD 33.8mil|
|Tenor||Approx. 9 years|
|Covered risks||Political Risk 100%, Commercial Risk 100%|
1This technology is categorized as “ultra-supercritical” according to the OECD unclassified document TAD/PG(2016)1 - Annex VI, which reflects sector understanding on export credits for coal-fired electricity generation projects agreed in November 2015.