EVN’s Deputy General Director Dinh Quang Tri
Reporter: How does the Fitch rating of BB mean to EVN, especially in mobilizing capital for power projects, Sir?
Mr. Dinh Quang Tri: That Fitch Ratings ranked the credit rating of EVN equal to the national credit rating is a very objective and very significant for EVN.
Annually, EVN needs to mobilize USD 5-6 billion to invest in power projects. Previously, the capital mobilization was mainly through ODA loan channels from international financial organizations such as WB, JICA, ADB, AFD or domestic and foreign commercial banks. In which, the majority of foreign loans are guaranteed by the Government.
However, the Government is currently planning to reduce the public debt and the guarantee of loans to businesses. Whereas businesses wishing to borrow loans without requirement for Government guarantee shall gain an international credit rating. Therefore, this credit rating is a guarantee for potential domestic and international investors for EVN. Currently, the stronger foundation for the Group could make it possible to mobilize capital investment in power projects, increasing the power supply capacity to customers.
In addition, EVN may issue international bonds to diversify its capital sources. Particularly, this rating also helps private investors signing long-term power trading contracts with EVN can mobilize capital without requirement for the Government guarantee. This is a good condition for independent power generators to invest in new power plants, sell electricity to EVN, increase the power supply sources for the power system of Vietnam.
| “This positive credit rating will guarantee individual investors and commercial lenders with EVN's technical and financial capacity and change their perception of risk when entering into long-term power purchase contracts as well as loan contracts. This level of credit also makes domestic and foreign institutional investors more confident in any EVN’s bond issuance plan" -said Mr. Ousmane Dione, World Bank Country Director for Vietnam. |
Reporter: Could you tell about EVN's plan for the issuance of international bonds?
Mr. Dinh Quang Tri: In the coming time, the Group will report to the Ministry of Finance, the Ministry of Industry and Trade, the State management agencies to issue international bonds. As estimated, each issue time is about USD 300-500 million.
EVN conducted discussion with the World Bank (WB) about making the implementation plan. During the first bond issue, the Group will co-operate with the WB so that the latter can assist the former in preparing the plan as well as seeking potential investors who can buy EVN's bonds with the most affordable, attractive interest rates.
Currently, although no international bond has been issued yet, banks are also ready to lend EVN at lower interest rates than before.
Reporter: EVN is Vietnam's first non-financial enterprise rated international credit. Could you tell us the tough conditions that EVN must meet to achieve this positive credit rating?
Mr. Dinh Quang Tri: The world's leading rating organizations all require businesses to present all annual audited financial statements. At the same time, the businesses are required to forecast financial and business plans for the next 10 years and continuously update information to such organizations.
For EVN, the Group has hired the world's leading independent auditing firms to conduct audits since 1998. The financial statements of EVN shall be honest, transparent, objective and clear.
The result of international credit rating shows that EVN's activities are in line with international practices and are trusted by foreign investors so that they are ready to invest in EVN or lend EVN loans without Government guarantee.
Reporter: Thank you very much Sir!