EVNHANOI, announced on July 29 is on par with both Vietnam’s sovereign rating and that of EVN, making it the first such utility in Vietnam and one of a select few in the region to achieve this landmark. This puts EVNHANOI on a stronger footing to scale up financing through more diversified sources including international capital markets, for instance by issuing long-term bonds.
The World Bank’s Energy and Extractives Global Practice supported the credit rating exercise through a combination of financing and advisory support, including by appointing Mizuho Bank to prepare for credit rating readiness and the subsequent rating exercise. This engagement was supported by the Public Private Infrastructure Advisory Facility (PPIAF) and the Global Infrastructure Facility (GIF).
This activity is part of the World Bank’s long-term engagement with the Government of Vietnam to find new ways to channel private investment into the electricity sector. The World Bank estimates that the sector will need to mobilize about US$10 billion of investment annually through 2030, of which, EVN itself would need to mobilize estimated US $5 billion annually.