The Asian Development Bank has approved a proposal to extend a $325 million guarantee for a 13-year syndicated loan of $342 million to the state-run Vietnam Electricity Group, or EVN, to upgrade its power network.
ADB's guarantee gives EVN the ability to access long-term commercial bank loans on competitive terms and should help spur more private investment in the sector, the lender said over the weekend.
"This ADB guarantee enables EVN to reduce its borrowing costs and to increase the tenor of the loan, while it also allows commercial banks to reengage in lending in Vietnam's infrastructure sector," said Xavier Humbert, Senior Energy Specialist in ADB's Southeast Asia Department.