BNP Paribas and Bank of China are providing an export credit agency-backed US$275mn to Vietnam’s national coal company, Vincomin.
The loan will be backed by a 13-year guarantee from China’s ECA Sinosure and has also been insured by Vietnam’s finance ministry.
The debt facility will go towards a US$429.5mn engineering, procurement and construction contract with China’s Kaidi Electric Power Co. for the construction of a thermal power plant in Mao Khe, Northern Vietnam.
The power plant is due to begin operation by 2012 and will produce 440MW of power through two turbines.
