Bank of China contributes $3 million to $270 million syndicated loan for the 450 MW Nhon Trach 1 Thermal Power Plant Project

On December 27, 2007, a syndicate of 18 banks — including the Bank of China (BOC) — signed a syndicated $270 million term loan agreement with Vietnam Oil & Gas Corp (PetroVietnam) — a Vietnamese state-owned oil and gas corporation — for the 450 MW Nhon Trach 1 Thermal Power Plant Project. This loan carried a maturity period of eight years and did not receive a guarantee from Vietnam's Ministry of Finance. BOC contributed $3 million USD. In addition to BOC, the following lenders contributed to the loan syndicate: BNP Paribas ($45 million), Australia and New Zealand Banking Group (ANZ) ($30 million), Natixis ($25 million), Sumitomo Mitsui Banking Corporation (SMBC) ($22 million USD), Woori Bank ($22 million USD), Asia Commercial Bank ($20 million USD), Calyon ($12.5 million), First Commercial Bank ($12.5 million), Mega International Commercial Bank ($12.5 million), PetroVietnam finance company ($10 million USD), Hua Nan Commercial Bank (HNCB) ($11 million USD), Mizuho ($10.5 million USD), United Overseas Bank ($10.5 million USD), the Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU) ($9 million USD), Chinatrust Commercial Bank ($6 million USD), Maybank ($6 million USD), and Orient Commercial Bank ($2.5 million USD). BNP Paribas, ANZ, Natixis, and PetroVietnam Finance Corporation served as mandated lead arrangers. SMBC, Woori, Asia Commercial, Calyon, First Commercial Bank, and Mega International served as lead arrangers. HNCB, Mizuho, and UOB served as arrangers. BTMU, Chinatrust Commercial Bank, and Maybank served as senior managers. BOC and Orient Commercial served as managers. This loan was PetroVietnam’s first joint contract with foreign banks without a guarantee from the finance ministry. The purpose of the loan was to construct the $420 million 450 MW Nhon Trach 1 Thermal Power Plant Project, as part of the Nhon Trach Combined-Cycle Gas Turbine Plant (CCGT), which is located near the OngKeo Industrial zone (IZ) starts near the confluence of the Song Dong Tranh and Long Tau rivers. Specifically, Nhon Trach 1 is located to the left of Long Tau riverbank in Dong Hai Province, approximately 70 kilometers southeast of Ho Chi Min City. Nhon Trach 1 consisted of two GT13E2 gas turbines capable of running on fuel oil and gas, two heat-recovery steam generators, one COMAX steam turbine, and three air-cooled TOPAIR turbo generators. Nhon Trach 1 is fully owned and operated by PVN through one of its subsidiaries. The plant was expected to provide 2.5 billion kW per year to the national grid and help power and gas demands of southeast Vietnam. It was scheduled to be operational in March 2009. The engineering and construction contract for the project was awarded to Construction Corporation No.1 Joint Stock Company (CC1). Lilama Corporation was involved in the construction of Nhon Trach 1. Aurecon provided design and project management services during plant development. Alstom delivered the power generation equipment for the project. Nhon Trach 1 went operational in August 2009.

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