Friday, November 28, 2008

PVTrans gets loan to buy oil tankers

PetroVietnam Transportation Corporation (PVTrans) on Nov. 26 signed a 175-million USD term loan facility agreement with a group of foreign banks led by Citigroup.

Other lenders include Calyon Corporate and Investment Bank, Fortis Bank and Societe Generale.

The proceeds will be used to finance the purchase of three oil tankers with capacities ranging between 80,000 tonnes and 120,000 tonnes.

The 13-year loan is guaranteed by the Nippon Export Investment Insurance (NEXI) and the Vietnam National Oil and Gas Group (PetroVietnam).

Speaking at the signing ceremony, Chief Executive Officer of Citibank Vietnam Brett Krause said: “The successful closing of this long term 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.”

Krause added that Citibank was honoured to be selected by PVTrans to play a key role in this landmark transaction which demonstrated their continued commitment to clients in Vietnam.

“The global economy and financial crisis has impacted Vietnam , some global investors have left Vietnam , but the economy continues to grow and we see Vietnam growing in the future,” Krause said. Citibank has poured capital into Vietnam , three times more than regulation limits, and we have no intention of taking investment capital out of the market because we have a stable and robust base in Vietnam ,” he added.

PVTrans Corp is a subsidiary of PetroVietnam- which holds 60 percent of PVTrans’ charter capital. The main business operation of PVTrans is the transportation of crude oil, petrol and other chemical products. CEO of PVTrans Pham Viet Anh said, “PVTrans expects to reach pre-tax profits of more than 100 billion VND (6 million USD) this year, and increase profits one and a half times in 2009”.

PVTrans has the largest fleet of liquid tankers in Vietnam with a combined capacity of nearly 400,000 tonnes. PVTrans has been assigned as the main carrier of oil products for the Dung Quat Oil Refinery Factory which is expected to start operations from February 2009.

According to the company’s development plan to 2015, PVTrans plans to invest 3 billion USD 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 as floating storage, and other oil and gal services.
Source: VNA

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