EVN presents equitisation plans

State-run monopoly Electricity of Vietnam, or EVN, has submitted a new plan to the government that states all affiliates would go public by the end of 2008, two years earlier than planned.

The latest move was promoted by recent successful shares auctions of select EVN subsidies on the local securities market, said Dinh Quang Tri, deputy general director of EVN.

The rapid growth of the stock exchange is a positive signal for the power group’s move to mobilize funds by going public.

Twenty-one subsidiaries had already auctioned off shares, with total assets of over VND19 trillion (1.2 billion US$), EVN’s board reported.

Another 14 enterprises had moved to go public starting last year and these were set to be completed by the end of this year, including the Ba Ria and Uong Bi thermo-electricity plants, and the Da Nhim – Ham Thuan – Da My Hydropower Plant in the central highlands region.

And the remaining six subsidies are scheduled to go public by the end of 2008, comprising the Nghi Son and Mong Duong thermopower plants in the central and the north; Telecom Co, Hanoi and Ho Chi Minh Electric companies, Electric Finance Co.


By mid-March EVN is set to auction shares worth VND120 billion (7.5mio US$) in the Ba Ria Thermoelectric Plant; shares worth VND140 billion (8.75mio US$) in the Thac Mo Hydropower Plant; and shares worth VND34 billion (2.1mio US$) in the Ninh Binh Thermoelectric Plant.

EVN expects to mobilize some VND40 trillion (2.5mio US$) and VND8 trillion (500mio US$) this year from bond issues and share sales respectively on the back of the group’s potential.

In fact, the value of the Vinh Son – Song Hinh hydropower plant had already risen to eight times higher than their face value of VND10,000, and the share value of Pha Lai thermoelectric plant had soared nine times higher than the face value of VND10,000.

The dividends paid by these businesses had also shown an increase of 12% annually.

Tri added that the group would apply a more flexible policy on controlling holdings in selling off shares in power plants depending on each situation.

Unlisted EVN’s management board planned to sell the majority of holdings in power plants, aiming to source outside capital.

The group is also set to issue corporate bonds in dong to generate some VND8 trillion (500mio US$) for infrastructure development.

EVN looks set to become the country's first issuer of overseas corporate bonds worth 150mio US$ to raise funds for power plants.

Market analysts said Vietnam’s power plants were becoming more attractive to investors, based on stable politics and a growing economy.

Power demand in Vietnam's economy, the world's fastest growing after China, is forecast to grow up to 17% per year, driving the government to plan the construction of 60 additional plants by 2020.

EVN raised VND6 trillion (373mio US$) from domestic bonds by late last year, saying the proceeds went to the construction of major power plants, such as the 2.3 billion US$ Son La hydro power plant.

Source: Thanh Nien