The World Bank (WB) has helped some Vietnamese power firms access more foreign capital after supporting the firms in acquiring Issuer Default Rating (IDR) from Fitch Ratings, said Mr. Franz Gerner, the WB’s lead energy economist. The firms are state utility Vietnam Electricity (EVN) and its subsidiary, Vietnam Electricity National Power Transmission Corp (EVNNPT). Last year, the Global Energy Department of WB supported the credit rating process of EVN, which helps it acquire IDR of ‘BB’ with a ‘Stable Outlook’ for long-term foreign currency. WB also gave technical assistance to the sustainable financial strategy of the state utility Vietnam Electricity (EVN), he added. Meanwhile, in April, Fitch Ratings assigned EVNNPT a long-term foreign-currency IDR of ‘BB’ with a stable outlook for the first time. Fitch assessed EVNNPT’s standalone credit profile at ‘BB+,’ which is stronger than EVN’s IDR. The move enables the two firms to issue international bonds, diversify financing sources, and reassure domestic and foreign institutional investors. Vietnam needs $8 billion each year to develop the power sector. However, due to the limited capital and the tighten access to preferential loans as Vietnam “graduated” from the International Development Association (IDA) in 2017, the country needs to diversify its investment mobilization. (Cong Thuong, VietnamNet, Dan Viet, Dan Viet, plo, BizLIVE, VietnamNet, CafeF, BizLIVE, Nang Luong Vietnam, BNews)
