Announcement of credit contract for Nhon Trach 3 and 4 Power Plant project

Announcement of a credit contract worth 521.5 million USD between PV Power and the banking consortium Citi and ING.

Nhon Trach 3 and 4 Power Plant Project is the first LNG-fired power plant in Vietnam and have a great significance in the national energy transition process. The project has a total investment of nearly 1.4 billion USD, in which the project's equity/loan structure is 25/75%.

Speaking at the announcement ceremony, Chairman of PV Power Board of Directors Hoang Van Quang emphasized: In the long-term development strategy, PV Power determines to take the gas-fired power industry as the main development orientation, and at the same time selects appropriate projects to develop in the field of renewable energy, clean energy in line with the Government's policy towards Net zero by 2050 and the world trend.

The development of PV Power in general and the investment in Nhon Trach 3 and 4 Power Plant projects in particular always have the parallel support of domestic and foreign banks, financial institutions, and export credit agencies.

To date, the credits signed by PV Power to finance the Nhon Trach 3 and 4 Power Plant projects include:

1. SMBC/SACE loan worth USD 200 million, signed on March 31, 2023.

2. VCB loan worth VND 4,000 billion, signed on September 26, 2023.

3. Credit contract worth USD 521.5 million with a consortium of two banks Citi and ING insured by KSURE and SERV.

The credit contract worth 521.5 million USD with the consortium of two banks Citi, ING insured by KSURE and SERV is the credit contract with the largest loan value to finance the Nhon Trach 3 and 4 Power Plant project. This credit source is very important for PV Power, ensuring progress, quality, and early commercial operation of the project, contributing to ensuring the overall progress of the project and stabilizing the national power system.

On behalf of the leaders of the Vietnam Oil and Gas Group (PVN), Deputy General Director Duong Manh Son said: The announcement of the credit contract worth 521.5 million USD marks an important milestone in the cooperation process between Citi, ING and PVN in general, PV Power and the consortium of 2 banks in particular. The Group's leaders hope that Citibank and ING will continue to provide credit for projects and production and business activities of PVN and its member units in the future.

PVN's leaders suggested that PV Power will have a plan to effectively use loans from Citibank/ING, as well as other banks such as the loan of SMBC guaranteed by SACE, the loan of 4,000 billion VND from Vietcombank./