Vietnam: PVTrans Signs US$175 Million Term Loan for Purchase of Oil Tanks

Hanoi – PetroVietnam Transportation Corporation (PV Trans) has signed a US$175m term loan facility agreement with a group of foreign banks led by Citi. Other lenders include Calyon Corporate & Investment Banking, Fortis Bank, and Societe Generale. Citi is the lead coordinator.

The proceeds will be used for financing the purchase of 3 crude oil vessels with capacity between 80,000 metric tons of deadweight (DWT) and 120,000 DWT for PV Trans to serve for transporting crude oil from Dung Quat Oil Refinery Factory.

The 13-year loan includes guarantees from Nippon Export Investment Insurance (NEXI) and Vietnam Oil and Gas Group (PetroVietnam).

Speaking at the signing ceremony, Mr. Brett Krause, CEO of Citi Vietnam said: “The successful closing of this long tenor loan facility amidst highly challenging credit market conditions, both locally and internationally, underlines the strong fundamentals and outlook for PetroVietnam as well as PetroVietnam Transportation Corp. Citi is honored to be selected to play a key role in this landmark transaction which demonstrates our continued commitment to our clients in the Vietnam market.”

PVTrans is the subsidiary of Vietnam Oil and Gas Group. The main business operations of PVTrans are the transportation of crude oil, petrol and other chemical products for domestic and overseas market. PVTrans has the largest fleet of liquid tankers in Vietnam with nearly 400.000 ton DWT. PVTrans has been assigned as the main carrier of oil products for Dung Quat Oil Refinery Factory which is expected to start running from February 2009.

According to the company’s development to 2015, PVTrans plans to invest US$3 billion in developing its fleet in order to meet the transport needs for oil refineries in Vietnam, develop its international oil transportation services and invest in other services such FSO/FPSO floating storage, transportation and other navigation, oil and gas services.