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Phu My 2.2: no ifs, just BOT

01 November 2002

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Almost five years to the day of publication of the bidding document, Phu My 2.2 ? Vietnam's biggest project financing to date and its first build-operate-transfer (BOT) ? reached financial close in October. The transaction is the cause of a heightened optimism that South-east Asia could provide precious dealflow to regional bankers. It should also make upcoming financings in the country a great deal easier. The $480 million deal includes multi-sourced financing using a variety of financial products. Co-ordinating lead arrangers ANZ, SG Asia (also financial advisor, documentation bank and interest rate swap/hedge provider) and Sumitomo-Mitsui are coy on pricing but benefit from a $75 million partial risk guarantee provided by the World Bank's International Development Association (IDA) as well as $25 million in extended political risk insurance provided by a private insurer under a partial risk guarantee from the...


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