Energy Capital Vietnam (ECV) selects Deutsche Bank AG as Debt Financing Advisor for LNG Project in Vietnam
DALLAS, Oct. 13, 2020 /PRNewswire/ -- Energy Capital Vietnam (ECV), a US-based project holding and development company established to serve as a platform for private investment into Vietnam, has selected Deutsche Bank AG to serve as its debt financing advisor. An ECV-led consortium is developing a liquefied natural gas (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.
"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," said Stefan M. Rohmer, Maius GmbH CEO.
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 tons per year (mtpa) of LNG, with an ability to increase consumption to reflect subsequent development phases and opportunities presented by market conditions.
This press release may contain forward-looking statements based on current assumptions and forecasts made by management or either company and other information currently available to either company. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. Neither company does not intend, and does not assume any liability whatsoever, to update these forward-looking statements or to modify them to conform with future events or developments.
SOURCE Energy Capital Vietnam
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