Solving capital problems for energy


( Renewable energy projects often require massive investment, causing many businesses to transfer project investment licenses.

There have been cases of energy industry enterprises applying for project’s investment licenses and then reselling them to Chinese enterprises.

Phu My of Bamboo Capital since the work started to close the electricity needed to disburse over 6,000 billion.

Key Feature

In general, the renewable energy development strategy for an enterprise is always based on 3 factors:

Firstly, the local and central level of business expertise to apply for project approval quickly. This component sounds unimportant, but in reality, it has a major decision right from the outset, as it just slows down, the project is postponed, and the company lacks the opportunity.

Secondly, energy is the accessible sector, which needs enormous financial power. For instance, Bamboo Capital, 2-project in Long a from the beginning, constructing to closing only 8 months but disbursing VND 2,200 billion. Or such as Phu My 330MW projects in Binh Dinh, it’ll have to disburse more than VND 6,000 billion for the entire steps. The capital for energy projects is, hence, exceptionally huge. This is the reason why many units had disposed of licenses.

Thirdly, the capacity radically introduces and ensures progress.

Therefore, the organization executing the project must follow the three above-mentioned criteria in order to be competitive in an energy project.

Diversify capital sources

Bamboo Capital has been approved and solved the capital problem for Long An project, thus creating confidence so that banks are willing to arrange capital.

Furthermore, it must be said that with investment capital for energy projects, the investment cash flow is large but the payback returns quickly. Sometimes the bank loan has not yet extended the grace period, but the company has completed the refund. Some banks are deeply committed and leader in lending in this field so that they are well aware of this issue.

Bank loans for energy projects, however, have very high interest rates, and the duration of project appraisal also lasts. Businesses need to look for longer-term, cheaper capital through cooperate with a Big Four audit firm in Singapore, or any other country. This contributes to alleviate the financial burden on energy projects.

Furthermore, if companies raise foreign money for energy ventures, it also means opening space to pursue bank funding for other fields and other initiatives. Due to the current prudent trend and tight credit, Vietnamese banks always have a limited room for each corporation.

Additionally, in order to find a partner to manage cheap foreign money, the project / business must first of all be transparent. Project making is always a learning and improvement process so that the latter is better than the first. Especially in the field of energy, it is necessary to ensure a low or average investment rate, and the company can invite the State Audit for independence if possible, Also, technology must be advanced in the top 5 to 10 in the world to be sufficient conditions for easy international loan approval.