Electricity company Trungnam Group plans $500-mln bond issuance
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Energy developer Trungnam Group plans to issue US$500 million worth of bonds in the next three years to fund a number of projects until 2030.
It is planning onshore and near-shore wind power plants that will almost triple its renewable energy capacity by 2026 from the current 1.6 gigawatts of mostly wind and solar energy, its management said.
It will also bid for a 1,500-megawatt liquefied natural gas power project in the central province of Ninh Thuan next year.
One of Vietnam’s largest renewable energy developers is mulling setting up a pilot green hydrogen plant with a capacity of 120-200 megawatts by 2025.
Trungnam became the first private company to build a 500-kilovolt transmission grid in Ninh Thuan, and planned to donate it to the country, but the lack of legal provisions to support the transfer of a private asset to the government has put the deal on hold.
Questions & Answers
Q.What is the primary purpose of Trungnam Group's planned bond issuance?
What is the primary purpose of Trungnam Group's planned bond issuance?
The bond issuance aims to fund a variety of projects that Trungnam Group intends to undertake between now and 2030, including expanding its renewable energy capacity and bidding for a major LNG power project.
Q.How much does Trungnam Group plan to increase its renewable energy capacity by 2026?
How much does Trungnam Group plan to increase its renewable energy capacity by 2026?
The company plans to nearly triple its current renewable energy capacity of 1.6 gigawatts by 2026. This expansion will mainly involve new onshore and near-shore wind power plants.
Q.What is preventing Trungnam Group from donating its 500-kilovolt transmission grid?
What is preventing Trungnam Group from donating its 500-kilovolt transmission grid?
The donation is currently on hold because there are no legal provisions in place to support the transfer of a privately owned asset to the government. This issue needs resolving for the deal to proceed.
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