China Development Bank contributes $600 million to $692 million syndicated buyer’s credit loan for 600MW Thang Long Coal-Fired Power Plant Construction Project

Project narrative

In October 2014, Thang Long Thermal Power Joint Stock Company— a project company that is owned by Hanoi Export-Import Company (Geleximco Group)— signed a $692 million syndicated buyer’s credit loan (BCL) agreement with a group of banks (including China Development Bank) for the 600MW Thang Long Coal-Fired Power Plant Construction Project. China Development Bank (CDB) contributed approximately $600 million to the loan. The other syndicate participants and their contributions are unknown. The borrowing terms of the loan are also unknown. Sinosure provided $919 million of buyer’s credit insurance to cover the principal and interest of the loan. The Vietnam Ministry of Finance also issued a sovereign guarantee on December 21, 2011. The loan proceeds were to be used by the borrower to partially finance a $645 million EPC contract signed on December 29, 2010 with Wuhan Kaidi Electric Power Engineering Co., Ltd. This $800 million Independent Power Project (IPP) was financed according to a debt-to-equity ratio of 80:20. Geleximco Group made a $160 million equity contribution. The purpose of the project was to construct a 600MW coal-fired power plant — with two, 300MW power generation units (Unit 1 and Unit 1) — in Lê Lợi commune, Hoành Bồ district, and Quảng Ninh province (exact locational coordinates: 21.02184, 107.04815). Construction began in October 2014. In August 2015, French firm Alstom was awarded a sub-contract to supply two circulating-fluidized-bed boilers. In June 2017, plans were finalized to build a 500 kV power line to connect the plant to the grid. Unit 1 was completed on May 13, 2018. Unit 2 was completed on July 29, 2018. In August 2020, it was reported that An Binh Energy and Infrastructure Fund had acquired a 45% indirect ownership stake in the power plant with an investment of $155 million.