ICBC contributes to $72 million syndicated loan for 45 MW Nam San 3B (NS3B) Hydroelectric Power Plant Acquisition Project

Project narrative

On January 31, 2020, the Industrial and Commercial Bank of China (ICBC) and Export-Import Bank of Thailand signed a $100 million loan agreement with BCPG Indochina Co., Ltd. (BIC) — a special purpose vehicle and wholly-owned subsidiary of BCPG Public Company Limited — to support the 69 MW Nam San 3A (NS3A) Hydroelectric Power Plant Acquisition Project. The loan carries the following borrowing terms: a 10-year maturity, a 0.25-year grace period, and an interest rate of 6-month LIBOR plus an unspecified margin. The borrower is responsible for making 40, quarterly repayments between March 2020 and March 2030. Then, on June 31, 2020, the Industrial and Commercial Bank of China (ICBC) and Export-Import Bank of Thailand signed a $72 million loan agreement with BCPG Indochina Co., Ltd. (BIC) — a special purpose vehicle and wholly-owned subsidiary of BCPG Public Company Limited — to support the 45 MW Nam San 3B (NS3B) Hydroelectric Power Plant Acquisition Project. The loan carries the following borrowing terms: a 10-year maturity, a 0.25-year grace period, and an interest rate of 6-month LIBOR plus an unspecified margin. The borrower is responsible for making 40, quarterly repayments between September 2020 and September March 2030. The purpose of the 69 MW Nam San 3A (NS3A) Hydroelectric Power Plant Acquisition Project was to facilitate BIC’s acquisition of all shares in Nam San 3A Power Sole Co., Ltd. — the project company responsible for the 69 MW Nam San 3A (NS3A) Hydroelectric Power Plant in Xiangkhouang Province — from Phongsubthavy Roads and Bridges Construction and Irrigation (PSG). The acquisition was completed on September 20, 2019. The purpose of the 45 MW Nam San 3B (NS3B) Hydroelectric Power Plant Acquisition Project was to facilitate BIC’s acquisition of all shares in Nam San 3B Power Sole Co., Ltd. — the project company responsible for the 45 MW Nam San 3B (NS3B) Hydroelectric Power Plant in Xiangkhouang Province — from Phongsubthavy Roads and Bridges Construction and Irrigation (PSG). The acquisition was completed on February 11, 2020. From 2022 onward, the two hydro power projects of BIC/BCPG — Nam San 3A and Nam San 3B — will be under power purchase agreements with Vietnam Electricity (EVN) for 25 years, resulting in an extension of power purchase agreement period from 2042 to 2047.