The Electricity of Vietnam (EVN) has approved a plan to issue corporate bonds worth total VND8 trillion, or US$500 million, in 2007.
Dang Phan Tuong, head of the EVN’s Equitisation and Securities Board, said the bonds will be issued in Vietnamese currency to both domestic and foreign investors.
EVN will emit the bonds in four phases. In the first phase, the bonds will be issued by An Binh Commercial Bank (ABBank) with technical assistance from Deutsche Bank and VinaCapital Fund Management Co. The second phase will be carried out by ABBank and the Hong Kong and Shanghai Banking Corp (HSBC), the third phase by ANZ Bank and the Saigon Securities Inc (SSI) and the fourth phase by ABBank and VIBank Securities Co (VIS).
Parallel with issuing corporate bonds, EVN will also raise VND6 billion (US$375 million) capital from the equitization process, Tuong said.
In 2006, more than 40 subsidiaries of EVN will be equitized or newly established.
The corporation plans to sell more of the state-owned stake in Pha Lai Thermo-Power Plant Company and the Thac Ba Hydropower Plant Company. However, EVN will retain at least 51 per cent stake in these firms.
EVN plans to raise VND42.4 trillion (US$2.65 billion) this year, including VND37.4 trillion for investment projects, VND5 trillion for debt repayment.
The firm will invest VND23.6 billion for electricity generation projects, VND11.8 billion for power grid projects, and VND700 billion for other related projects, and VND1.2 trillion for joint venture projects.
To this end, EVN plans to borrow VND8.4 trillion from foreign sources, VND14.2 trillion from self-raised sources (including issuing bonds and equitization process), VND1.14 trillion from the state budget, VND4.6 trillion from preferential capital, VND11.9 trillion from domestic credits, and VND2 trillion from foreign credits. (Securities Investment, Economy and Urban)
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