This summary covers an investment by Mizuho Bank, Ltd. of Japan and other international lenders (to be determined) into the project enterprise incorporated in Cambodia, Cambodian Transmission Limited. The project involves a loan to an existing operator of a high voltage transmission line in Cambodia. The lenders have applied for MIGA guarantees covering up to US$76 million of their debt investment into the project. The guarantees will have a term of up to 10 years, providing coverage against the risks of transfer restriction, expropriation, war and civil disturbance and breach of contract. The project will improve the financial viability of the transmission line operator by enabling a loan from international banks on competitive terms.
The project is a category B under MIGA’s . Click to view the Environmental and Social Review Summary.
The project will contribute to demonstrate the viability of foreign lending and (partial) foreign investor exits in the energy sector in Cambodia, enabling the substitution of foreign SOE financing for foreign commercial funding and contributing to attract further foreign capital for project finance in the country and/or diversify its sources.