Mitsui, Kuwait Petroleum, Idemitsu, Petro Vietnam to invest $9 billion in Vietnam project

THANH HOA PROVINCE, VIETNAM: Mitsui Chemicals Inc, Idemitsu Kosan Co Ltd, Kuwait Petroleum International and Petro Vietnam announced the final decision to invest a total $9 billion in their refinery and petrochemical complex construction project at Nghi Son economic zone, Thanh Hoa Province, Vietnam. Following this decision, Nghi Son Refinery & Petrochemical Limited Liability Company (NSRP), the project’s joint venture company, concluded a financing agreement with a public financial institution and private banks in a total of $5 billion.

The financing agreement consists of approximately $2.3 billion from the Japan Bank for International Cooperation (JBIC) and the Export-Import Bank of Korea and approximately $2.7 billion in loans from domestic and overseas private banks which are insured or guaranteed by Nippon Export and Investment Insurance (NEXI) and foreign export credit agencies. It is noted that the project has received a $1.65 billion loan from JBIC and a $1.3 billion overseas investment insurance coverage by NEXI.

This final decision on project investment and financing agreements will allow construction to start in July. Construction is scheduled for completion in 2016 and commercial operation is targeted for 2017.

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