Hoang Xuan Quoc, general director of PetroVietnam Nhon Trach Power 2 Joint Stock Company, and Gary Chan, managing director, global banking of Citibank in Vietnam, shake hands after signing the credit arrangement deal in Hanoi last Tuesday. Photo: Courtersy of Citibank

Citibank has cut a deal to arrange a credit of US$470 million for PetroVietnam Nhon Trach 2 power plant project under support of foreign export credit agencies in Hanoi, said the bank’s statement.

The debt was arranged last week by the Export and Agency Finance Division, which is part of Citibank’s Global Transaction Services, located in Frankfurt, Hong Kong, Tokyo and Singapore, as sole mandated lead arranger. The debt is available in the U.S. dollar and euro.

The 12-year financing is guaranteed by Vietnam’s Ministry of Finance and insured by the German Export Credit Agency of Euler Hermes Kreditversicherungs AG (Hermes) and Japanese Export Credit Agency Nippon Export and Investment Insurance (NEXI). The Hermes-supported loan is about US$295 million while the NEXI-supported facility will provide the project with approximately US$175 million of financing.

The capital will be used for financing of deliveries and service for construction of Nhon Trach 2 gas-fired combined cycle power plant with capacity of more than 750MW in Dong Nai Province.