REFILE-Citigroup sign Vietnam finance deals http://www.reuters.com/article/companyNewsAndPR/idUSHAN12818520070619?sp=true
Tue Jun 19, 2007
(Corrects to remove extraneous "who" in fourth paragraph)
HANOI, June 19 (Reuters) - Citigroup (C.N: Quote, Profile, Research) said on Tuesday it has signed financing deals with three major Vietnamese companies to provide loans, banking services and consultation on a domestic bond issue.
A Citigroup statement said it signed the agreements in New York for undisclosed amounts with dominant state utility Vietnam Electricity (EVN) group, Vietnam National Shipping Lines (Vinalines) and top coal producer Vinacomin.
None of the companies are listed.
Vietnamese President Nguyen Minh Triet arrived in New York on Monday in the first visit to the United States by a Vietnamese head of state since the U.S. war in Vietnam ended in 1975.
Citigroup would advise Vinacomin, also the largest mining firm, on a bond issue on Vietnam's markets, the statement said without elaboration. "This financing will enable Vinacomin to diversify funding sources to meet increasing local demands in energy," Vinacomin chairman Doan Van Kien was quoted in the statement as saying.
Citigroup, which runs two bank branches in Vietnam, will provide EVN with financing, cash management and online banking products, the statement said. The state utility needs $3 billion in annual investment to meet electricity demand, which has been growing at 16 percent to 17 percent a year, EVN Chief Executive Pham Le Thanh said.
Communist-ruled Vietnam has targeted economic growth of 8.5 percent this year and up to 8.7 percent in 2008.
Under the deal with Vinalines, Citigroup would finance the state-run firm to expand its fleet and build ports, the global financial services company said.
Vietnam joined the World Trade Organisation in January but foreign investors say it needs big improvements in infrastructure in sectors such as transport, telecoms, banking and financial services and energy.
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