The company said in a filing with Bursa Malaysia today that the financing is to construct a 2.12 gigawatts (GW) thermal power plant in Hau Giang Province, southern Vietnam, involving a proposed project financing facilities of up to US$2.69 billion (RM12.62 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 project’s engineering, procurement, construction and commissioning (EPCC) works.

“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.

It said the equipment facility is not expected to have any effect on the company’s issued share capital and the shareholdings of its substantial shareholders.

“However, it is expected to contribute positively to the company’s earnings,” it said.

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.

At the close of trading, TVHB’s share price was up by 29 sen or 23.39% at RM1.53, giving the group a market capitalisation of RM203 million.