ING Groep N : Vietnam's PV Power picks banks to facilitate $1.4 billion LNG project loans

HANOI (Reuters) - Vietnam's state-run PetroVietnam Power Corp has signed a deal to allow a consortium of two local banks to arrange a $1.4 billion syndicated loans for two liquefied natural gas (LNG) projects, the government said on Wednesday.

The funds will be used for the construction of the 1,500-megawatt (MW) total capacity Nhon Trach 3 and 4 plants, which were granted government approval in 2018.

Techcombank and Military Bank were appointed to be lead arrangers to facilitate and lead an investor group, the government said in a statement.

The company last year signed a deal with Citibank and ING Bank for funds arrangement for these projects.

The plants, which are based in the southern province of Dong Nai, are scheduled to start commercial operations from the fourth quarter of 2022, according to PetroVietnam Power.

Vietnam's industry minister has said the country would begin importing LNG from the year after amid its rising demand for electricity.

(Editing by Martin Petty)