Bloomberg News

AES Said to Sign $1.46 Billion of Loans for Vietnam Power Plant

July 22, 2011

July 22 (Bloomberg) -- AES Corp., a U.S. power producer with operations in more than two dozen countries, signed loan facilities of some $1.46 billion with banks to finance an electricity power plant it part owns in Vietnam, according to a person familiar with the matter.

Mong Duong II power plant is owned 51 percent by AES, 30 percent by Posco, the world’s third-biggest steelmaker by output, and 19 percent by China International Capital Corp., the person said, asking not to be identified as details are private.

One loan of $342 million was provided by Export-Import Bank of Korea, or Kexim, which also guaranteed a second $280 million facility taken up by a group of another lenders. A third $839 million facility, subscribed for by the same group of lenders, was guaranteed by Korea Trade Insurance Corp, the person said.

BNP Paribas, Credit Agricole CIB, HSBC Holdings Plc and ING Groep NV helped syndicate the $839 million and $280 million loans, the person said. Those banks were joined by Natixis, Societe Generale SA, Sumitomo Mitsui Banking Corp., Mizuho Financial Group Inc., Standard Chartered Plc, UniCredit SpA, Credit Mutuel-CIC and DZ Bank AG, the person said.

All facilities mature in 18 years, the person said.

Mong Duong II is Vietnam’s biggest private power project and will cost up to $1.95 billion, according to AES’s website. The 1,200-megawatt plant is expected to commence operations by the end of 2014.

To contact the editor responsible for this story: Katrina Nicholas at knicholas2@bloomberg.net


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