YKVN Advised PetroVietnam Power Corporation on Both International and Local Financing for the Nhon Trach 3 and Nhon Trach 4 LNG-to-Power Projects, the First of their Kind in Vietnam
October, 2024 - Vietnam
As lead counsel, YKVN, alongside Pinsent Masons, represented PetroVietnam Power Corporation (PV Power) in securing up to US$ 521.5 million in tied ECA loans for the Nhon Trach 3 and 4 projects. These power plants have a combined capacity of approximately 1,500 MW and a total investment capital of around US$ 1.4 billion, positioning them as the most advanced LNG-to-power projects in Vietnam. The financing structure includes corporate loans consisting of an untied ECA facility, tied ECA facilities, and a local facility.
In addition to the tied ECA loans, PV Power also secured a local loan of approximately VND 4,000 billion and a bridge loan of US$ 300 million. YKVN provided advice on these financings as well.
The tied ECA financing agreements were signed earlier in September 2024 in Hanoi, marking the largest financing from tied ECA lenders in Vietnam’s power sector in the past four years.
This landmark transaction sets a precedent for future LNG-to-power projects, with the successful financing being particularly notable as these large-scale projects are the first to proceed without a government guarantee.
“This transaction reflects a new trend toward ‘hybrid corporate finance’ for large-scale projects, as traditional project finance becomes more challenging. Hybrid corporate finance, unlike the typical corporate finance for smaller investments, increasingly mirrors project finance with strict ESG requirements, secured revenue streams, financial covenants, and more,” said Duong Thu Ha, YKVN’s Partner.
The YKVN team was led by Managing Partner Truong Nhat Quang and Partner Duong Thu Ha, with support from Counsel Nguyen Huong Giang and Associates Pham Hanh Trang and Pham Linh Chi.
More about the transaction here.
