Standard Chartered Bank will lead source a syndicated term loan facility of $250 million for the Vietnam Oil and Gas Group (PetroVietnam) to construct and complete the Dung Quat Refinery.

Under a deal signed between the two sides in Hanoi on Wednesday, proceeds from the facility will be used to partly finance capital expenditures in relation to the construction and completion of the Dung Quat Refinery.

Standard Chartered Bank is the Original Mandated Lead Arranger, Book Runner, Facility Agent and Security Agent.

Ashok Sud, Chief Executive Officer of Standard Chartered Bank in Vietnam, Laos and Cambodia, said: “PetroVietnam is leading the way in tapping large pools of international capital markets which will be essential to finance the growing needs of infrastructure in Vietnam.”

Located in the Dung Quat bay in central Vietnam, the refinery has an annual processing capacity of 6.5 million tons of crude oil per year providing about 30 percent of domestic demand on oil and gas on a 100 percent projected capacity run.

Standard Chartered Bank and PetroVietnam have also signed a Memorandum of Understanding on this occasion under which the former will arrange to raise financing of up to $1.5 billion from the capital market for PetroVietnam Group’s forthcoming financing requirements.(Thanhnien)