|
|
Bank Finance and Project Finance
The practice of YKVN focuses on bank finance and project finance transactions and YKVN is considered a top Vietnamese law firm on these areas.
YKVN regularly advises both lenders and borrowers on significant lending transactions in Vietnam. On the lender side, YKVN advised Asian Development Bank, ANZ Bank, Credit Lyonnais, Fortis Bank and Export-Import Bank of Malaysia Berhad on the financing of a BOT water treatment plant for Ho Chi Minh City at Thu Duc – one of the first limited recourse international BOT project financings in Vietnam. The project was named "Asia-Pacific Water Deal of the Year 2001" by Project Finance. We also advised a syndicate of banks led by International Commercial Bank of China, Ho Chi Minh City Branch on a US$ 53 million financing of the Phuc Son Cement Plant. This deal involves multiple jurisdictions and the transaction documents are governed by Vietnamese, Taiwanese and Singaporean laws. This is probably the first time a Vietnamese law firm acting as lead documentation counsel in such cross-border transaction. YKVN is advising a syndicate of the 4 State-owned banks led by Bank for Investment and Development of Vietnam on a US$ 65 million construction financing of the Sekaman 3 Power Plant in Laos. This is the first BOT power project undertaken by Vietnamese developers outside Vietnam.
In particular, we have been acting on a string of construction financings for a number of infrastructure projects in Vietnam. We recently advised a syndicate of 4 State-owned banks led by Bank for Foreign Trade of Vietnam on a US$ 255 million financing of the construction of Dong Nai 3 and Dong Nai 4 Hydropower Plants (named “Deal of the Year” 2006 by Asian Counsel). Our other key representations include:
| • |
advising a syndicate of the four State-owned banks led by Bank for Foreign Trade of Vietnam on a US $90 million financing of the Pleikrong Hydropower Plant;
|
| • |
advising a syndicate of the four State-owned banks led by Bank for Foreign Trade of Vietnam on a US$110 million financing of Srepok Hydropower Plant;
|
| • |
advising a syndicate of the four State-owned banks led by Bank for Foreign Trade of Vietnam on a US$134 million financing of Nam Chien Hydropower Plant;
|
| • |
advising a syndicate of the four State-owned banks led by Bank for Foreign Trade of Vietnam on a US$62 million financing of Ta Thang Hydropower Plant; |
| • |
advising a syndicate of 4 State-owned banks led by Bank for Investment and Development of Vietnam on a US$ 110 million construction financing of the Srepok Hydropower Plant;
|
| • |
advising a syndicate of the 4 State-owned banks led by Bank for Investment and Development of Vietnam on a US$ 100 million construction financing of the A Vuong Hydropower Plant;
|
| • |
advising a syndicate of the 4 State-owned banks led by Bank for Investment and Development of Vietnam on a US$ 89 million construction financing of the An Khe-Kanak Hydropower Plant;
|
| • |
advising a syndicate of the four State-owned banks led by Bank for Investment and Development of Vietnam on a US $26 million financing of Na Duong Thermalpower Plant;
|
| • |
advising a syndicate of the four State-owned banks led by Bank for Investment and Development of Vietnam on a US $110 million financing of Se San 3A Hydropower Plant;
|
| • |
advising a syndicate of the four State-owned banks led by Bank for Investment and Development of Vietnam on a US$12 million financing of Ban Coc Hydropower Plant;
|
| • |
advising a syndicate of the four State-owned banks led by Industrial and Commercial Bank of Vietnam on a US$90 million financing of Song Tranh 2 Hydropower Plant;
|
| • |
advising a syndicate of 4 State-owned banks led by Industrial and Commercial Bank of Vietnam on a US$ 212 million construction financing of the Bim Son Cement Plant;
|
| • |
advising a syndicate of banks led by Bank for Foreign Trade of Vietnam on a US$ 120 million financing of the construction of the second line of Chinfon Haiphong Cement Plant;
|
| • |
advising a syndicate of the four State-owned banks led by Bank for Investment and Development of Vietnam on a US $140 million financing of Binh Phuoc Cement Plant;
|
| • |
advising a syndicate of the four State-owned banks led by Bank for Investment and Development of Vietnam on a US $67 million financing of But Son Cement Plant;
|
| • |
advising a syndicate of the four State-owned banks led by Bank for Investment and Development of Vietnam on a US $72 million financing of Thang Long Cement Plant; and
|
| • |
advising a syndicate of the four State-owned banks led by Bank for Investment and Development of Vietnam on a US $60 million financing of Ha Long Cement Plant.
|
In all these transactions, we have successfully introduced international standard documents in Vietnamese and these documents have now been accepted by Vietnamese banks as market standards.
On the sponsor side, we are advising China Southern Power Grid International and China Power International Development in the development and financing of the 1,200MW Binh Thuan build-operate-transfer coal-fired power plant expected to be worth more than US$ 1 billion. This will be one of the biggest coal-fired power plants in Vietnam.
We recently acted for Ha Tien Cement Company No. 1 on the financing and construction of its Binh Phuoc Cement Plant with the total project costing approximately US$ 300 million. The project is probably the biggest cement plant project developed by a Vietnamese company. YKVN also recently advised Southern Steel Corporation on the EPC contract for the construction of a steel plant and associated facilities in the Phu My complex. This is the first EPC contract in the steel industry. The EPC contract follows the FIDIC form for EPC/Turnkey Projects which is widely applied in projects financed on a no recourse or limited recourse basis.
Our other sponsors' representations include:
| • |
advising the consortium of PetroVietnam, Petronas, LG, and Conoco in the preparation of a detailed feasibility study and joint venture arrangements among other consortium members in connection with the development of the Dung Quat refinery; and
|
| • |
advising AES in the preparation of the bid documents in connection with the development of a coal-fired power plant in Quang Ninh Province.
|
With our experience in hand, we are working together with Latham & Watkins to assist the International Finance Corporation advise the Ministry of Industry to develop a standard framework for BOT power projects in central Vietnam which will include standards for selecting investors, negotiating project documents such as power purchase agreements and financial closing. The project documents developed in this project will be used as benchmark for future BOT power projects in Vietnam.
We are at the cutting edge of the development of the syndicated loan market. We advised a syndicate of foreign bank branches and Vietnamese banks led by Chinfon Bank in the US $30 million-equivalent VND refinancing of US dollar project debt of Chinfon Cement Joint Venture. This was the first VND syndicated loan facility agented by a foreign bank. We advised Citibank and Salomon Smith Barney on the provision of a US $70 million-equivalent VND syndicated loan facility to refinance project debt previously provided to Holcim Vietnam by a syndicate of offshore lenders led by IFC and a group of Thai banks. We advised a syndicate of banks led by Bank for Foreign Trade of Vietnam on the US $ 20 million refinancing of US dollar project debt of Nghe An Tate & Lyle, a subsidiary of Tate & Lyle PLC (UK). This was the first syndicate of foreign bank branches and Vietnamese banks agented by a Vietnamese bank. Our other representative transactions include:
| • |
advising a syndicate of banks led by Bank for Investment and Development of Vietnam on a US $80 million financing of the construction of the 70 storey Financial Tower which will be one of the tallest building in Vietnam when completed;
|
| • |
advising a syndicate of banks led by Bank for Investment and Development of Vietnam on a US$ 25 million refinancing of project debt of Furama Hotel;
|
| • |
advising a syndicate of banks led by Bank for Investment and Development of Vietnam on a US$ 33 million refinancing of project debt of Caravelle Hotel;
|
| • |
advising a syndicate of banks led by Chinfon Bank on a US$ 33 million financing of Saigon South project, Phase 3 of Phu My Hung project company;
|
| • |
advising a syndicate of banks led by Indovina Bank on the US$ 15 million refinancing of the offshore loans of the Horison Hotel project company;
|
| • |
advising a syndicate of banks led by Bank for Investment and Development of Vietnam on a US$ 23 million financing of a new production line of Orion-Hanel Picture Tube Joint Venture; and
|
| • |
advising a syndicate of banks led by Military Bank on a US$ 15 million financing of the construction of Vincom Tower, the biggest office building complex in Hanoi.
|
The scope of our work with State-owned Vietnamese banks is unmatched in Vietnam. YKVN has represented all the four State-owned Vietnamese banks on significant lending transactions. In addition to the transactions noted above, we advised:
| • |
Bank for Foreign Trade of Vietnam on a US$ 6.7 million financing of the construction of Nam Hai Resort in Danang;
|
| • |
Bank for Foreign Trade of Vietnam on a US$ 15 million refinancing of the offshore loans of the Sun Red River Building project company in Hanoi;
|
| • |
Bank for Foreign Trade of Vietnam a US$ 15 million financing and a subsequent US$ 4 million financing for completion of the construction of Sheraton Hanoi Hotel and Towers, a five-star international hotel in Hanoi;
|
| • |
Bank for Foreign Trade of Vietnam a US$ 2 million financing of the ongoing expansion of the Hanoi French Hospital, an international hospital in Hanoi; and
|
| • |
Bank for Investment and Development of Vietnam on the financing of the United Nations International School (UNIS) and the financing of an office building in Hanoi.
|
YKVN regularly advises international banks and financial institutions on financing transactions related to projects in Vietnam, including factories, hotels, office buildings, telecommunications and schools. We advised Export-Import Bank of Malaysia Berhad on a US$ 2 million financing of the development and construction of a knitted garment manufacturing plant in Binh Duong Province. This was the first direct loan of Malaysian Eximbank in Vietnam. Malaysian Eximbank took fixed assets in Vietnam through complex and innovative security agency arrangements with a bank in Vietnam which were approved by the State Bank of Vietnam. This is a rare occasion where such approval has been given by the State Bank of Vietnam. We also advised Export-Import Bank of Malaysia Berhad on another US$ 2 million financing of the development and construction of a plant in Vinh Phuc Province. We are also advising International Finance Corporation on a Dong facility to a Vietnamese commercial bank. This was the first Dong facility granted by a foreign lender and has been approved by the State Bank of Vietnam. In addition, we advised:
| • |
Societe Generale for the pledge agreement with Mercon Coffee Corporation to secure a loan from certain property and assets existing in Vietnam;
|
| • |
Citibank on a US$ 10 million loan to a Taiwanese shoe producer;
|
| • |
Citibank on the restructuring of its US$ 34 million loan to finance an office building in Ho Chi Minh City;
|
| • |
Citibank on a US$ 10 million loan to Vietnam Post and Telecommunications; and
|
| • |
Citibank on the sale to another foreign bank branch in Vietnam of its US$ 38 million loan for a luxury resort complex.
|
|
