PVN halts $1b in bond sales overseas

The PetroVietnam Group has indefinitely post-poned its planned sale of corporate bonds overseas, the State-owned petroleum giant announced at a press conference on Tuesday.

The sale, worth US$1 billion, had been set to transpire in the fourth quarter of last year.

“PetroVietnam will choose an appropriate time in the future to sell the bonds because this point of time is not favourable for us,” said chairman Dinh La Thang.

Some other State-owned enterprises have also put plans to issue bonds on ice, including mining giant Vinacomin, which shelved a planned $500 million issue. Much of the blame has fallen on the difficulties that troubled shipbuilder Vinashin has had repaying $600 million it owes to Credit Suisse.

PetroVietnam has taken pains to distance itself from the problems of its fellow State-owned enterprise.

“In recent years, Petro-Vietnam has restructured and equitised its affiliated companies,” said Thang. “The changes have been aimed at sharpening the competitive edge of our companies in an atmosphere of rapid global change.”

Late last year, PetroVietnam-affiliated companies sold over 60 million shares at an average price of VND31,000 ($1.50) per share, raising a total capital of VND1.9 trillion ($90.5 million).

PetroVietnam presently has 37 affiliates listed on the HCM City or Ha Noi stock exchanges, with plans to list an additional 13 later this year.

The group expected to equitise Nhon Trach Power Plant No 1 this year, affirmed PetroVietnam deputy director Le Minh Hong. — VNS

Tags: PVN bonds