Vietcombank and Petrovietnam signed a credit contract of over 1 billion USD for the Block B

These are the largest credit contracts in the energy industry, for the largest-ever gas project in Vietnam, affirming Vietcombank's pioneering role and Petrovietnam 's initiative in arranging capital for key national projects.

Representatives of the two implementing units signed loan contracts for upstream and midstream projects of the Block B - O Mon Gas Power Project Chain. Photo: LC

According to the signed content, Vietcombank is the bank providing medium and long-term credit for Petrovietnam to implement two upstream and midstream projects of the Block B - O Mon gas and power project chain.

Previously, in March 2024, the two sides signed a framework contract to arrange credit for the entire Project Chain, creating a solid foundation for this contract. The two projects to develop and exploit gas in Block B & 48/95, Block 52/97 and the Block B - O Mon gas pipeline are large-scale, playing a role in providing stable gas supply to power plants in the Mekong Delta, contributing to reducing import dependence, ensuring energy security and realizing the strategy to develop the gas and clean energy industry according to the adjusted Power Plan VIII as well as the Government 's commitment to reduce emissions at COP26.

Speaking at the signing ceremony, Deputy Prime Minister Ho Duc Phoc congratulated Vietcombank and Petrovietnam on signing a credit contract for the Block B Gas - Power Project - a key national project of strategic significance in implementing Resolution 70 of the Politburo on national energy development to 2030.

The Deputy Prime Minister affirmed that Vietcombank's arrangement of over 1 billion USD in capital for the project demonstrates the strong financial capacity, pioneering role and sense of responsibility of the country's leading bank in accompanying the Government in implementing sustainable development goals and ensuring energy security.

The Deputy Prime Minister commended the effective coordination between Vietcombank and Petrovietnam in building a circular financial flow, contributing to the harmonization of fiscal and monetary policies, thereby creating momentum for economic growth, maintaining macroeconomic stability and enhancing the position of the Vietnamese banking industry.

Governor of the State Bank of Vietnam Nguyen Thi Hong also highly appreciated the significance of the signing ceremony, affirming that this is a step to concretize the major policies of the Party and State on ensuring national energy security, associated with the goal of net zero emissions by 2050.

The Governor emphasized that Vietcombank is one of the few banks with enough potential and prestige to make large-scale, medium- and long-term foreign currency loans; demonstrating outstanding capacity in mobilizing, balancing and managing international capital sources, typically the bank was the focal point for arranging funding for the Long Thanh Airport project worth 1.8 billion USD, in which Vietcombank contributed 1 billion USD, showing the bank's outstanding funding capacity.

Mr. Nguyen Thanh Tung, Party Secretary and Chairman of the Board of Directors of Vietcombank, said that the event affirmed the shift in the position of state-owned financial corporations and institutions, from following and accompanying to leading and creating, from depending on foreign capital to a domestic resource management structure, effectively connecting with international capital flows according to market rules. From the mindset of electricity waiting for gas, gas waiting for capital to synchronously implementing the entire project chain, optimizing overall proactive risk management.

The signing ceremony conveyed a message: State-owned corporations and commercial banks have the full power and strength to shoulder great responsibilities. The national internal strength has changed. We are no longer passive, no longer dependent, but can stand on our own two feet to implement long-term strategic regional-scale projects. This is the transition from following and accompanying to leading the creation of national pillar enterprises. The two national enterprises join hands not only to let the air flow and the electricity shine, but also to let the belief shine - the belief that Vietnam is big enough, state-owned enterprises are strong enough, the banking system is brave enough to shoulder regional-scale projects with our own resources and intelligence.

Speaking at the event, Mr. Le Manh Hung, Member of the Government Party Committee, Member of the National Assembly's Economic and Financial Committee, Party Secretary, Chairman of the Board of Directors of Petrovietnam, emphasized that the contract is a clear and concrete demonstration of the creative efforts of both parties in maximizing domestic resources, replacing foreign capital that must be arranged from the foreign market with more competitive loan terms and conditions, better risk control, disbursement and debt repayment than foreign loans. This will increase the efficiency of the project, bringing benefits to the country and efficiency to both parties.

Petrovietnam leaders believe that with timely financial resources and smooth coordination mechanisms between state management agencies, ministries and localities, and the support of Vietcombank and partners, the Block B O Mon project chain will be implemented on schedule, bringing gas ashore soon, providing stable fuel supply for the power plant cluster in the Mekong Delta.

Source: https://daibieunhandan.vn/vietcombank-va-petrovietnam-ky-ket-hop-dong-tin-dung-hon-1-ty-usd-cho-chuoi-du-an-khi-dien-lo-bo-mon-10391237.html