ECV selects Deutsche Bank as advisor for Vietnam LNG project
Published by Will Owen,
Energy Capital Vietnam (ECV) has selected Deutsche Bank AG to serve as its debt financing advisor. This selection has been made while an ECV-led consortium is developing an LNG power project in Mui Ke Ga, Binh Thuan Province, in Southeast Vietnam.
Deutsche Bank AG has been mandated as ECV’s debt structuring advisor and to subsequently become global lead arranger for all required debt financing of the project.
“Vietnam has recently implemented policy reforms to encourage private sector participation necessary to meet its incredible energy demand over the next decade, and ECV’s market-driven financing model can deliver sustainable investment.” said David Lewis, ECV Chairman and CEO. “By engaging Deutsche Bank, which brings proven expertise in strategic capital structure solutions and debt placement on a global scale, ECV is well positioned to build a long-term foundational framework for private sector financing of energy infrastructure in Vietnam.”
Prime Minister Nguyen Xuan Phuc recently issued a directive to add ECV’s project to the National Power Development Plan of Vietnam. The Ministry of Industry and Trade (MOIT) is charged with submitting the updated plan for years 2021 - 2030 to the Prime Minister in October 2020.
Deutsche Bank Vietnam’s Acting Chief Country Officer, Huynh Buu Quang said:
“Deutsche Bank is pleased to support ECV for this significant national energy project, which strengthens Vietnam’s energy diversification and security. The project will spur valuable economic development for Binh Thuan province, generating new jobs and business opportunities for the region’s communities during construction, and delivering reliable energy to support steady economic growth for Vietnam once complete.”
Maius GmbH, a Swiss structuring and project finance advisor, advises ECV on the structuring of its debt and equity, and risk mitigation of this project. The solution uniquely integrates insurers and financiers reducing and sharing the risk, thereby securing a significant reduction in project risk and finance cost.
Stefan M. Rohmer, Maius GmbH CEO, said:
“It is a great pleasure to witness firsthand the methodical trust ECV has earned from the government of Vietnam to pioneer this groundbreaking project. We are proud to work with Deutsche Bank and contribute innovative sourcing solutions from international capital to support the ambitious growth of Vietnam.”
The fully private, multi-phase power project will connect via subsea pipeline to an offshore floating storage and regasification unit (FSRU) to import LNG. Phase I of the project is targeting final investment decision (FID) in late 2021 and commercial operational delivery (COD) by 2025. The project will consume approximately 1.5 million tpy of LNG, with an ability to increase consumption to reflect subsequent development phases and opportunities presented by market conditions.
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/13102020/ecv-selects-deutsche-bank-as-advisor-for-vietnam-lng-project/
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