Vietnam Daily News

Vietnam's international capital-raising costs may increase by 9-10pct pa

Written by Dailynews.vn Monday, 12 December 2011 19:44

Capital-raising in Vietnam is predicted to become more difficult with high costs in the context of downgrading in credit ratings of many Vietnamese large banks and enterprises. The leaders of PetroVietnam Joint Stock Financial Corp (PVFC) have lately released the costs for raising capital via issuance may reach 9-10 percent per year. With such lending interest, the corporation finds it hard to arrange capital for paying the principal and interest for the loans in order to realise the normal projects. Meanwhile, Vietnam's capital demand for large-scale projects was at high level. In 2012, the National Oil and Gas Group (PetroVietnam) only may need total capital of 260 trillion dong for investment in power generation and oil refinery projects. At present, among five current power projects, the group has just arranged capital for Vung Ang Thermo Power Plant project only with total capital of over $1.6 billion. The other projects of Quang Trach, Long Phu, Thai Binh 2, Song Hau have been in capital thirst.

Source: www.intellasia.net/news/articles/stock_market/111350533.shtml