Scaling Up Financing In Vietnam Vietnam Wind Power Virtual 10 - - PowerPoint PPT Presentation

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Scaling Up Financing In Vietnam

Vietnam Wind Power

Virtual 10 June, 2020

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As the U.S. Government’s development finance institution, DFC provides private companies with financing and risk mitigation tools for private sector projects in emerging markets and developing countries.

Who We Are

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Our Global Presence

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What We Offer

Infrastructure Financing

Limited recourse project financing for infrastructure investment, including energy, transportation and telecommunications

Access to Finance

Corporate and structured financing for financial institutions to expand local access to capital, including SME, microfinance and mortgage lending

Social Enterprise Program

Loans to high-impact businesses in agriculture, fintech, healthcare, and

• ther sectors, with a focus
• n inclusion and economic

empowerment

USAID Mission Support

Projects meeting USAID country mission priorities are eligible for loans and credit guarantees

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Investment Priorities

Energy

Help meet growing demand for energy, expand access in remote and developing areas, and promote energy independence

Infrastructure

Create jobs and stimulate economic growth through increased trade and connectivity by supporting critical infrastructure, including roads, railways, airports and sea ports

Technology

Connect emerging markets to the world and create new

• pportunities for the

developing world to leapfrog traditional boundaries

Healthcare

Provide access to medical services, facilities, and lifesaving treatments, as well as promote critical water, sanitation, and hygiene projects

Small Businesses and Women Entrepreneurs

Investing in women entrepreneurs and small businesses to create jobs and opportunity at the local level that can be reinvested to grow communities

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Products and Services

Debt Financing

Corporate and project loans and guarantees of up to $1 billion with tenors as long as 20 years for private sector- driven, commercially viable investments

Political Risk Insurance

Protection up to $1 billion against risks including currency inconvertibility, governmental interference, and political violence

Investment Funds

Debt and equity investments in emerging market private equity funds

Equity Investment

Direct investment into high impact businesses seeking growth capital

Technical Assistance

Targeted technical assistance to promote viability or impact of potential DFC-supported projects

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Development Finance Institutions (DFIs) seek to catalyze private sector investment into emerging economies by providing support to viable projects that are unable to

• btain the requisite support from private sector lending

and insurance institutions. Primary DFI roles are in the implementation stage of a project, providing long term debt financing, political risk insurance or equity in order for a project to move forward into execution and implementation. Some DFIs also provide project preparation assistance, such as PPP program advice, structuring and implementation of project RFPs, and funding to support related preparatory work.

DFI Roles & Project Lifecycle

Implementation

• Investor interest
• DFI + Private sector

financing Identification of Opportunities

• Program design, feasibility

studies

• ODA + other agency grants

Host Country Government Initiative to Attract Private Sector Investment

• Defining needs, strategy, resource

requirements

• ODA assistance, eg. World Bank, USAID

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Existing clients are the primary focus of DFIs, who want to be sure projects in the portfolio and in the pipeline – approved but not yet disbursed, for example – remain viable and come out of the crisis in a sustainable manner. Prospective clients and projects are typically impacted by government and other market forces that create delays and uncertainty. DFIs are supportive but have limited capability to move projects forward on their own. New clients may surface should originally anticipated private sector sources of financing and insurance show signs of stress, such as reduced liquidity and risk appetite, thus necessitating a turn to DFIs to fill the gap.

DFI Support during the Covid Crisis

Existing loans are, where necessary, being proactively restructured and provided with for example additional funding, extended grace periods, adjusted amortization and longer tenors to survive and move beyond the crisis. New projects must be assessed or reassessed in light of potential revised power demand projections and possible adjustments to national power development plans. Vietnam wind financing prospects are less affected by Covid than by the current government FIT policy and PPA, pending changes to the program – including, longer term, the move to an auction process – and domestic bank appetite for incremental EVN exposure.

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Contact

Geoffrey Tan Managing Director, Asia Pacific U.S. International Development Finance Corporation (DFC) geoffrey.tan@dfc.gov

Contacts & Resources

Resources

For more information, visit www.dfc.gov.