China Eximbank contributes to $143 million syndicated buyer’s credit loan for 100MW An Khanh 1 Coal-Fired Power Plant Construction Project (linked to Record ID#100726, #100727, #100728)

Project narrative

On December 22, 2011, four Chinese state-owned banks and An Khanh Thermal Power Joint Stock Company— a project company and special purpose vehicle (SPV)— signed a $143,055,000 syndicated buyer’s credit loan agreement for the 100MW An Khanh 1 Coal-Fired Power Plant Construction Project. The Zhejiang Branch of the Bank of China (BOC, China Construction Bank, the Export-Import Bank of China (China Eximbank), and Bank of Communications each contributed approximately $35.75 million to the syndicated loan. The borrowing terms of the loan included a 13-year maturity and 3-year grace period. The loan's interest rate is unknown. The borrower was expected to use the syndicated loan proceeds to partially finance a $168.3 million EPC contract signed in June 2010 with People Electrical Appliance Group (PEOPLE). Record ID#35270 captures the estimated financial commitment of China Eximbank, Record ID#100726 captures the estimated financial commitment of Bank of China, Record ID#100727 captures the estimated financial commitment of China Construction Bank, and Record ID#100728 captures the estimated financial commitment of China Bank of Communications. The first loan disbursement equal to $39,355,000 did not occur until January 5, 2013 and the entire $143,055,000 was disbursed as of May 10, 2015. In December 2011, the Bank for Investment and Development of Vietnam (BIDV) also provided a $25 million loan for the 100MW An Khanh 1 Coal-Fired Power Plant Construction Project. The Independent Power Project (IPP) project was financed with 85% debt and 15% ($25 million) equity. The purpose of the project was to construct a 100MW coal-fired power plant — with two, 50MW power generation units (Unit 1 and Unit 2) — in An Khánh commune, Dai Tu district, and Thái Nguyên province. PEOPLE was the EPC contractor responsible for project implementation. Works officially commenced on January 30, 2010. The power plant was officially inaugurated and connected to the national electricity grid on October 1, 2015.