Narrative
Full Description
Project narrative
On September 15, 2011, PetroVietnam Ca Mau Fertilizer Company Limited (PVCFC) — a project company and subsidiary of the state-owned Vietnam Oil and Gas Group (PetroVietnam) — signed a $220 million syndicated buyer’s credit loan (BCL) agreement with BNP Paribas Bank, China Eximbank, and Credit Agricole Bank for the Ca Mau Fertilizer Plant Construction Project. China Eximbank contributed $154 million to the syndicated loan. The borrowing terms are as follows: an 10-year maturity (120 months from the first disbursement date on July 25, 2012), a 3-year grace period, and an interest rate of 6-month LIBOR plus 2.6% margin (3.122%). Sinosure provided buyer’s credit insurance and the Vietnam Ministry of Finance provided a sovereign guarantee. The proceeds of the loan were to be used by the borrower to partially finance an EPC contract signed on May 6, 2008 with Wuhuan Engineering Co., Ltd., a subsidiary of China National Chemical Engineering Group Corporation Ltd. (CNCEC). The purpose of the project was to construct a fertilizer plant in Khánh An commune, U Minh District, and Cà Mau Province. CNCEC was the contractor responsible for project implementation. A formal groundbreaking ceremony was held on July 26, 2008. The project passed a performance appraisal an April 20, 2012, and the owner issued a temporary project acceptance certificate (PAC) on April 25, 2012. Then, on April 25, 2014, the project owner issued the final acceptance certificate (FAC).
Staff comments
1. The Chinese project title is 金瓯化肥厂or 越南金瓯4080化肥工程总承包项目 or 越南金瓯化肥项目. The Vietnamese project title is dự án Nhà máy Đạm Cà Mau. 2. The all-in interest rate was estimated as follows: 0.522% (Avg. 6-month USD LIBOR in Sept. 2011) + 2.6% = 3.122% 3. Interest rates were adjusted every 6 months from the date of receiving the first loan. Interest was paid monthly based on outstanding debt of the loan which begins from the first arising of debt. Interest was paid every 6 months (see "Prospectus on Initial Public Offering," p. 40). 4. The China Eximbank loan that supported this project is not included in the Overseas Development Finance Dataset that Boston University’s Global Development Policy Center published in December 2020.