Lowering the price of the trillion-dollar debt of the giant who owns the first wind power plant

REVN’s debt at Agribank is temporarily estimated to be VND 1,209 billion as of December 31, 2023. Of which, outstanding principal debt is more than 728.7 billion VND, outstanding interest debt is over 466.6 billion VND, unpaid guarantee fee is 14 billion VND.

The debt was formed from loan contracts signed between the two parties in February 2008 and September 2014.

Agribank is selling the above debt at a starting price of 1,036 billion VND. This is the third time this bank has offered to sell REVN’s debt. In the first sale (January 2024), the starting price of the debt was 1,209 billion VND. Thus, the starting price has decreased by 173 billion VND after only two months.

REVN’s loan is secured by assets under contracts of mortgage of land use rights and assets attached to land, including the entire Wind Power Plant 1 – Binh Thuan under the Wind Power Construction investment project. Electricity 1 – Binh Thuan.

The project has a total investment of 2,000 billion VND, including two phases (80 turbines). To date, this project has completed phase 1, including 20 wind turbines with a total capacity of 30 MW.

Total project investment in phase 1 is more than 800 billion VND. Each year, Wind Power Plant 1 – Binh Thuan provides electricity output of about 85 million kWh.

Vietnam Renewable Energy Company Limited (REVN) with Mr. Pham Van Minh as Chairman of the Board of Members and General Director. Mr. Minh is also the General Director of Urban Business and Infrastructure Investment Company Limited (UBI) – an enterprise with a bad debt of VND 1,650 billion at Agribank.

UBI’s collateral for the above debt includes the entire production line of the Vietnam Turbine Factory – Phase 1, in Kim Thanh district, Hai Duong province.

Thus, only two bad debts of the group of businesses owned by Mr. Pham Van Minh at Agribank have reached 2,850 billion VND.

In addition to REVN’s debt, Agribank is also selling collateral for the loan of Loc Phat Energy Development Joint Stock Company, an enterprise headquartered in Ho Chi Minh City. The assets for sale are two land use rights, with a total area of ​​more than 15,000 square meters in Thanh Tan commune, Tan Phuoc district, Tien Giang province. Starting price is 22.15 billion VND.