Electricity of Vietnam (EVN) is set to issue overseas corporate bonds next year, expecting to raise 300mio to 500mio US$ off the first phase, said an executive of the utility.
The bonds would be sold on international markets to raise funds for giant power plants, Dinh Quang Tri, deputy general director said.
Although a timeframe for the issue was not announced, Tri added that the government had already approved the issue in principle.
The Hanoi-based utility, which dominates the electricity industry in booming Vietnam, was in the process of choosing a foreign consultant to audit and establish a credit rating for the company.
If the process runs as scheduled, EVN would be the country’s first issuer of overseas corporate bonds.
Along with preparation for the forthcoming issue of overseas corporate bonds, the group planned to issue VND8 trillion (502mio US$) worth of bonds in the second quarter of this year for infrastructure development.
Unlisted EVN had raised VND6 trillion (377mio US$) from domestic bonds 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.
The group needs VND250 trillion (15.6 billion US$) for the 2006-2010 period to build power plants.
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 move was promoted by recent successful shares auctions of select EVN subsidies on the local securities market, according to Tri.
Power demand in Vietnam's economy, the world's fastest growing one after China, is forecast to grow up to 17% per year, prompting the government to plan 60 additional plants by 2020.
Source: Thanh Nien
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