AES-VCM gets loan for $1.95B Vietnam power plant

AES-VCM Mong Duong Power will construct Vietnam's largest private sector power plant, a $1.95 billion coal-fired plant, on a build-operate-transfer basis.

Twelve foreign banks will join hands to lend more than $1.46 billion to Twelve foreign banks will join hands to lend more than $1.46 billion to the 1.24 GW Mong Duong 2 coal-fired power plant in northern Vietnam, the plant's operator said on Monday.

The first disbursement is expected next month for the $1.95 billion 1,240-megawatt plant in the coal hub province of Quang Ninh.

Korea Eximbank, the biggest single provider of direct debt, and Korea Trade Insurance Corporation would provide commercial guarantees and political risk cover, said the Hanoi-based firm, 51 percent owned by an affiliate of U.S. AES Corp .

French lender CIC Bank and DZ Bank are lead arrangers of the loan joined by another 10 banks, the statement said without giving any terms of the financial package nor detailed fundings by each of the lenders.

The full story is available on Reuters.