Malaysia's Toyo Ink Group Bhd is assessing financing options to fund the construction of a coal-fired thermo-electric plant in Vietnam that now awaits the final green light from the Vietnamese Prime Minister’s office, the local newspaper The Star reported Wednesday.

A thermo-electric plant in Quang Ninh, Vietnam

Managing director Steven Song said the company was considering a rights issue to raise some equity for the proposed US$2.5bil plant at Duyen Hai 3, Tra Vinh Province, Vietnam.

“We may raise a certain portion of the project capital ourselves and fund the balance through borrowings. We will talk to our bankers on the best approach and seek their advice on equity financing,” he said, adding the company may raise 20% to 30% of the project capital via equity financing.

He said given the massive outlay involved, Toyo Ink would consider “looking for joint venture partners or captains of the industry who are prepared to take some equity in this consideration.”

“When things are finalised, we will start to look for equity partnership. We are open to discussions,” he said.

Toyo Ink’s core business is the manufacture of solvent and water-based inks as well as varnishes used in the packaging industry.

It has operations in Malaysia, Singapore and Vietnam. Song said the 30-year-old company diversified into the power sector when it saw an opportunity to tap into.

“We have been exporting our products to Vietnam and have manufacturing facilities there. However, we noticed that interruption to electricity supply is quite common and saw opportunity to grow in this sector,” he said, adding that Vietnam was currently experiencing a “critical power shortage.”

On the prospects of the company, Song was upbeat.

“We anticipate the worst is over and hope that this year there would be some gradual improvement,” he said.

Active trading in Toyo Ink shares since Dec 28 pushed the stock to its 12-month high of RM2.42 on Monday before closing at RM2.35 on total volume of 2.16 million units, prompting a query from Bursa Malaysia.

The counter shed 23 sen to finish at RM2.15 with 1.64 million shares traded yesterday.