PetroVietnam loaned $1 billion for refinery

The Finance Ministry instructed the Viet Nam Development Bank (VDB) to lend Viet Nam National Oil and Gas Group (PetroVietnam)US$1 billion for the Dung Quat Oil Refinery Plant No1 late yesterday.

Of the money, $700 million will be drawn from Viet Nam’s second sovereign bond and the remainder from BNP Paribas Bank.

The second bond will mature in 2020 with a yield of 6.95 per cent and a nominal interest rate of 6.75 per cent.

Borrowing interest will be paid every six months and the entire loan at maturity.

The remaining $300 loan from BNP Paribas matures in 2020 at a yearly fixed interest rate of 3.3 per cent and three year’s grace.

PetroVietnam’s re-borrowing terms from the ministry is 16 years at fixed interest of 3.6 per cent and four year’s grace.

The overdue rate is 8.15 per cent.

VDB will co-ordinate the loan. – VNS

Tags: Dung Quat Oil Refinery Plant, PetroVietnam