Thai company secures $3.2 billion loan for Vietnam petrochemical complex

By Dang Khoa   October 30, 2018 | 10:03 pm PT
Thai company secures $3.2 billion loan for Vietnam petrochemical complex
The logo of the Siam Cement Public Company Limited is pictured at its office building in central Bangkok. Photo by Reuters
Siam Cement Group said it has got a $3.2 billion syndicated loan from six foreign banks for its long-delayed petrochemical complex in Vietnam.

Roongrote Rangsiyopash, chief executive of the Thai company, said things are in readiness for the construction of the Long Son petrochemical complex in the southern Ba Ria Vung Tau Province.

"We have already got the loan, and there is no need to wait for anything," he told Japan’s Nikkei Asian Review newspaper.

The loan is from Sumitomo Mitsui Banking Corporation, Mizuho Bank, Bangkok Bank, Krung Thai Bank, Siam Commercial Bank, and Export-Import Bank of Thailand.

The total investment in the plant will be $5.4 billion, with the remaining $2.2 billion coming from the company's own resources.

Rangsiyopash said commercial operation should begin in 2023.

The Thai conglomerate has become the 100 percent owner of Long Son after buying out Vietnam Oil and Gas Group (PetroVietnam)’s 29 percent stake last May.

Licensed in 2008, the plant is designed to produce 1.6 million tons of polyethylene and olefins.

It was originally expected to cost $3.7 billion, but cost overruns have since taken it up to $5.4 billion.

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