EVN Seeking Govt OK to Issue VND5T Bonds This Year
The state-run Electricity of Vietnam Group (EVN) is seeking the government’s approval to issue VND5 trillion (US$261.8 million) worth of corporate bonds to raise funds for its power projects in 2010.
The bond issue is a necessary as the loans disbursements by local banks for its projects are low, an EVN senior official said.
As many as VND2 trillion bonds will be issued first in next couple of days to compensate 2009 spending for underway projects, said Chief Accountant Mai Quoc Hoi.
Since the fourth quarter of 2009, lending by Vietnam Development Bank and commercial banks to almost power projects has remained low, while many banks are asking to raise lending rate to 14%-15%.
EVN has also proposed to borrow US$500 million from the government’s US$1 billion sovereign bonds raised in January to ensure sufficient fund for power and electricity grid works.
In 2010, the electricity group plans to invest a total VND58.5 trillion into its projects, up 22.64% from last year. (Investment)
Vietnamese
