Export-Import Bank of Malaysia Berhad (EXIM) has been appointed exclusive Mandated Lead Arranger for a syndicated financing facility of $2.42 billion for the $3 billion Song Hau 2 thermal power plant in Hau Giang province.
In a Tuesday announcement, Malaysia-based Toyo Ventures Holdings Berhad, the investor of the coal-fired power plant, said its subsidiary, Song Hau 2 Power Company Limited, would be the borrower.
In mid-November, Toyo Ventures Holdings Berhad had announced that it had received a letter from Vietnam’s Ministry of Industry and Trade granting an extension period until June 30, 2024 to make financial arrangements for this thermal power project.
Hau Giang province and the Malaysian investor signed an agreement for the 2,120 MW project under the build-operate-transfer (BOT) format in December 2015. The project missed the initial deadline for completion in the second quarter of 2022, partly due to the investor’s inability to meet its capital obligations.
The power plant is one of five coal-fired power projects prioritized in the national power development plan VIII (PDP VIII). However, as all five projects – Cong Thanh, Nam Dinh 2, Quang Tri, Vinh Tan 3, and Song Hau 2 – are facing capital arrangement problems, the Ministry of Industry and Trade has extended their deployment deadline June 2024, failing which they could be terminated.