Vietnam Electricity, the country's dominant power utility, plans to establish a financial company to raise funds for energy investments by issuing bonds and other securities.
The new unlisted group, to be named Electricity Finance Joint Stock Company, will be established this month provided it wins approval from the central bank, Vietnam Electricity said in a statement.
"The company will issue corporate bonds to serve investment needs of the power sector. It will also issue bonds, certificates of deposit and other papers to raise funds from domestic and foreign sources," the statement said.
Vietnam Electricity executives have said the Hanoi-based group needed $3 billion to $4 billion per year in the next three years to build power plants and a grid network to meet soaring demand fuelled by Vietnam's rapid economic growth.
The group plans to issue VND8 trillion of bonds this year, up from last year's VND6 trillion.
The new firm will have an initial capital of VND3 trillion ($186 million), Vietnam Electricity said.
The group will own 90 percent of its financial arm while the remaining 10% will be split between partly private An Binh Bank and Toan Cau Insurance Co.
Other economic conglomerates such as state oil and gas group Petrovietnam and the Vietnam Textiles and Garments group have established their own finance arms.
Source: Thanh Nien
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment