Loan funds Vietnam’s first petroleum bonded warehouse

A loan from a consortium of banks has allowed state-owned Van Phong Petrol Bonded Warehouse Co. Ltd. (VPPBW) to proceed with plans to build Vietnam’s first petroleum bonded warehouse. VPPBW secured received on June 8 a US$77.5 million credit line from Petrolimex Group Commercial Joint Stock Bank, Saigon Commercial Bank, Vietnam Bank for Industry and Trade, and Military Commercial Joint Stock Bank. The credit amount composes 62% of the total investment in the warehouse and is valid for up to 12 years. The 500,000 cubic meter warehouse will be built in Van Phong Bay and will cost an estimated US$125 million to construct. VPPBW expects construction of the warehouse to be finished by 2011. (June 9, 2009)