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PVN signs ISDA contracts with foreign banks
The Vietnam National Oil and Gas Group (PVN) signed in Hanoi on Sept. 9 three standardised ISDA contracts with foreign banks as the basis for derivative transactions in the future.
The banks include PVN and BNP Paribas, Sumitomo Mitsui Banking Corporation (SMBC) and Standard Chartered Bank. This was the first time that PVN had inked such contracts including the ISDA Master Agreement 2002 of the International Swaps and Derivatives Association.
The signing is expected to be a prerequisite for the signing of PVN’s future practical derivative transactions to mitigate risks for the group’s financial activities.
Speaking at the signing ceremony, PVN Deputy General Director Nguyen Tien Dung said that in implementing its development investment strategy in the next period, PVN has been mobilising capital from various sources for oil and gas energy projects. So far, the group’s foreign loans have hit 3 billion USD.
He also said that PVN and its partners would hold negotiations to sign practical derivative contracts.
SMBC took part in provision of loans of 270 million USD to the Nhon Trach 1 power plant project, 300 million USD to the Dung Quat oil refinery and 96 million USD to Vung Ang power plant.
Standard Chartered Bank was a joint lender of 250 million USD to the Dung Quat oil refinery.
PVN plans to negotiate with other foreign banks like Citibank and Lions to sign more ISDA to create necessary competitiveness in selecting providers of derivative services.
vietnamplus
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