Hanoi Power Corporation receives BB credit rating from Fitch with support from WB
|
This puts EVNHANOI on a stronger footing to scale up financing through more persified sources including international capital markets, for instance by issuing long-term bonds.
Nguyen Anh Tuan, Chairman of Hanoi Power Corporation said “This marks a significant turn for EVNHANOI. Fitch’s positive rating is an important building block toward becoming fully self-sufficient in project financing by enabling us to optimize the capital structure and persify our source of financing”.
The World Bank’s Energy and Extractives Global Practice supported the credit rating exercise through a combination of financing and advisory support, including by appointing Mizuho Bank to prepare for credit rating readiness and the subsequent rating exercise. This engagement was supported by the Public Private Infrastructure Advisory Facility (PPIAF) and the Global Infrastructure Facility (GIF).
“This successful credit rating for EVNHANOI is a continuation of the World Bank’s support to the energy sector to develop a sustainable financing strategy,” said Stefanie Stallmeister, Acting Country Director for the World Bank in Vietnam.
“The credit rating demonstrates the strong operational and commercial performance of Vietnam’s power companies and is expected to attract much-needed commercial capital to the sector", Ms Stefanie Stallmeister noted.
According to Fitch, EVNHANOI’s credit profile is supported by its dominant market position in electricity distribution in the capital of Hanoi, its stable and persified customer base, and low receivables. If EVNHANOI can maintain financial performance and establish track record of independent tariff setting mechanism and automation, its stand-alone rating can be further strengthened.
EVNHANOI supplied power to more than 2.5 million customers in Hanoi in 2019, generating revenues of more than VND 40 trillion (US$1.7 billion). EVNHANOI manages and operates an electrical grid system which provides electricity for an economic hub which sees an average consumption growth of 10 percent per year.
This activity is part of the World Bank’s long-term engagement with the Government of Vietnam to find new ways to channel private investment into the electricity sector.
The World Bank estimates that the sector will need to mobilize about US$10 billion of investment annually through 2030, of which, EVN itself would need to mobilize estimated US$5 billion annually.
Related News
The WB highlights a series of challenges, the banking system must enhance resilience
13:57 | 25/08/2023 Finance
Challenges persist for Vietnam"s growth: WB report
14:50 | 21/06/2023 Headlines
Australia, WB extend partnership to support Vietnam"s development
14:16 | 15/06/2023 Headlines
Risk management should be applied in many areas
08:37 | 16/04/2023 Import-Export
Latest News
SBV takes more actions to stabilise foreign exchange rates
13:43 | 24/04/2024 Finance
Proposal to exclude criminal liability for tax officials when businesses provide false information to refund VAT
10:35 | 24/04/2024 Finance
Corporate bond maturity in 2024 remains high: MoF
13:51 | 23/04/2024 Finance
Support clearance procedures for imported gold for bidding
09:33 | 23/04/2024 Finance
More News
The exchange rate will gradually cool down from the end of the second quarter of 2024, while interest rates will remain low
09:32 | 23/04/2024 Finance
Majority of credit institutions forecast profit growth in 2024
15:16 | 22/04/2024 Finance
Central bank plans to auction gold bars on April 22
18:00 | 21/04/2024 Finance
Old loans must endure higher interest rates temporarily: central bank
15:44 | 19/04/2024 Finance
State-owned enterprises flourished
14:15 | 19/04/2024 Finance
Forum discusses support for women-owned firms to join supply chains
17:41 | 18/04/2024 Finance
Ensure savings and prevent losses in disbursement of public investment
10:24 | 18/04/2024 Finance
Implementing unprecedented fiscal policies to actively support people and businesses
16:25 | 17/04/2024 Finance
Foreign investors net sell in Vietnamese market, banking sector attracts interest
16:13 | 17/04/2024 Finance
Your care
SBV takes more actions to stabilise foreign exchange rates
13:43 | 24/04/2024 Finance
Proposal to exclude criminal liability for tax officials when businesses provide false information to refund VAT
10:35 | 24/04/2024 Finance
Corporate bond maturity in 2024 remains high: MoF
13:51 | 23/04/2024 Finance
Support clearance procedures for imported gold for bidding
09:33 | 23/04/2024 Finance
The exchange rate will gradually cool down from the end of the second quarter of 2024, while interest rates will remain low
09:32 | 23/04/2024 Finance