Vietnam seeks to raise $50mln in Hai Phong thermal power plant stake sale

Luu Van Dat Wednesday | 06/10/2020 15:13

SCIC plans to raise $50.45 million from the stake sale. Photo: Haiphong Thermal Power

Vietnam is seeking to raise $50 million by selling a 9% stake or 45 million shares in Haiphong Thermal Power via an auction on June 18, government's State Capital Investment Corp. announced.

The 45 million shares will be auctioned at an initial price of VND26,000 ($1.1) apiece, potentially valuing the sale at VND1.17 trillion ($50.45 million), SCIC said.

Vietnam plans to sell some operational state-owned power plants to foreign investors to raise funds for urgently needed new projects and ease pressure on public debt.

Haiphong Thermal Power, which owns a coal-fired power plant in Haiphong City in northern Vietnam, had total assets of VND12.66 trillion ($546 million) at the end of 2019.

Last year, it reported net revenue of VND11,301 billion ($487 million) and VND1,173 billion ($50.6 million) after-tax profit. The energy firm targets 2020 net revenue at VND11,255 billion ($485 million) and VND896 billion ($38.6 million) after-tax profit.

The company was established in 2002 with the purpose to develop a thermal power plant with the initial charter capital of VND3 trillion ($130.43 million). In 2008, the charter capital was increased to VND5 trillion ($217.4 million) in order to implement Haiphong 2 thermal power plant.

In July 2005, Japan's Marubeni Corporation and China's Dongfang Electric Corporation were awarded the construction contract for the 600MW Haiphong 1 with two units. Unit 1 came online in July 2011, and Unit 2 in November 2011.

In November 2006, the company signed a contract, again with Marubeni Corporation and Dongfang Electric Corporation, to build the second, two-unit 600MW Haiphong 2 coal power plant, at the same location.

The first 300MW unit of Haiphong 2 started operating in August 2013, and the second in February 2014. The cost of the entire project was $1.2 billion. Loans were provided by the Export-Import Bank of China and the Japan Bank for International Co-operation.

Haiphong Thermal Power has two plants (the above-mentioned Hai Phong 1 and Hai Phong 2 thermal power plants with a total capacity of 1,200MW) and manages and is allowed to use millions of square meters of land in Hai Phong city.

Source: SCIC, VIR