KUALA LUMPUR (June 7): Toyo Ventures Holdings Bhd’s (TVHB)(KL:TOYOVEN) wholly owned unit Song Hau 2 Power Company Ltd (SH2P) has secured US$980 million equipment financing facility from i-Power Solutions Pte Ltd.

The company said in a filing with Bursa Malaysia on Friday that the financing is for the construction of a 2.12 gigawatt (GW) thermal power plant in Hau Giang Province, southern Vietnam, which involved proposed project financing facilities of up to US$2.69 billion.

TVHB said the purpose of the equipment facility is to finance up to 70% of the invoice amount for the procurement of equipment required for the engineering, procurement, construction and commissioning (EPCC) works of the project.

“The primary objective of the equipment facility is to provide financial support for the acquisition of essential equipment necessary for the successful execution of the EPCC activities within the project framework,” it added. 

The equipment facility is not expected to have any effect on the issued share capital of the company, or the shareholdings of its substantial shareholders, while it is expected to contribute positively to the earnings of the company.

“After the acceptance and utilisation of the equipment facility, the debt-to-equity ratio of TVHB, based on the audited financial statement of the group as at Sept 30, 2023, is seven times,” it said.