Hogan Lovells advises on US$2 billion financing of Van Phong 1 BOT power project in Vietnam

A cross-office, cross-practice team led out of Tokyo acted as common lenders' counsel and advised JBIC, NEXI, MUFG, SMBC, Mizuho Bank, Sumitomo Mitsui Trust Bank, DBS Bank, OCBC and Bank of China in connection with the US$2 billion financing for a 1,320 MW thermal power project in Khanh Hoa province, Vietnam. Once completed, this greenfield project will be one of the largest IPP projects in Vietnam. 

The Van Phong project was initially proposed by Sumitomo Corporation (sponsor) in 2006 and the government approved the project for BOT status in 2009. The electricity generated from the Van Phong power plant will be sold to Vietnam Electricity (EVN), the country's state-owned power utility, for 25 years. The project is the first of its type to reach this stage of its financing under a new Vietnam regime for foreign currency conversion and remittance, where a 70:30 foreign currency regime was applied.

Joseph Kim, Tokyo Finance practice head, said: “Hogan Lovells is honored to have represented the lenders in this important project to address and meet ongoing power shortages in Vietnam. This representation highlights the growing strength of the Hogan Lovells IERP team in Asia and the deepening of its institutional relationships with key project funders in Asia. We look forward to representing our clients in future transactions."

The Hogan Lovells team was led by Tokyo IERP partner Joseph Kim, and included Tokyo partner Sean Conaty, Singapore partners Alex Wong and Samantha Campbell, Tokyo associates Chantel Varley-Best and and Tokyo senior associate Chiyokazu Shindo, Singapore associates Benita Lee and Zack Lin, Hong Kong associate Erica Kelly, Tokyo partners Wataru Kamoto and Hiroto Imai, London counsel Nick Tidnam, Singapore associate Shobha Padmanabhan, Jakarta counsel Anthony Wooley and senior associate Randy Rifdaan, Ho Chi Minh City senior associate Long Huynh and associate Mai Phuong Nguyen, and Hanoi associate Bach Nguyen.