BIDV and LSP sign US$200 million credit agreement

Tuesday, Aug 29, 2023 14:41

Kulachet Dharachandra, General Director of LSP and Trịnh Anh Đức, Branch Director of BIDV Ba Tháng Hai, representing the two entities signing the contract. — Photo courtesy of BIDV

BIDV and Long Sơn Petrochemicals Company Limited (LSP) have signed a credit agreement with a facility limit of US$200 million, the bank announced on Tuesday.

The Petrochemicals Complex in the South of Việt Nam project, with a total investment of more than $5 billion, is invested by Long Sơn Petrochemicals Company Limited (LSP), a subsidiary of SCG Chemicals or SCGC, a leading integrated chemical player in ASEAN. This project applies modern technologies, high levels of digitisation, and automation, and carries significant economic and social importance. It serves as a prominent example of economic cooperation between Việt Nam and Thailand.

Since 2021, BIDV and LSP have actively engaged in effective collaboration across various domains. BIDV has not only provided short-term working capital financing, but also implemented numerous modern and diverse banking products and services, and leveraged advanced technology and digitization, such as virtual account collections, ERP connection.

In his speech at the signing ceremony, Trần Long, Deputy CEO of BIDV, said: “Today’s signing ceremony reaffirms the determination of BIDV and LSP to realise the goal that LSP will become a leading producer and distributor of plastic resins in Việt Nam and the region. With the market position and experience of the oldest bank in Việt Nam, BIDV will accompany LSP and the SCG Group in Việt Nam in implementing current and upcoming projects; while strengthening and building an effective collaboration and partnership between BIDV and LSP".

Kulachet Dharachandra, General Director of LSP, said that LSP was the first integrated petrochemical complex in Việt Nam which could contribute significantly to Việt Nam's economy by reducing plastic imports and strengthening the domestic value chain with sustainable development.

In this pursuit, LSP firmly believed that BIDV shared the common objective and was sure that collaboration between BIDV’s financial expertise and LSP’s industry know-how would strengthen the ecosystem of petrochemical value chain ranging from LSP's suppliers and customers. This short-term loan agreement marked the beginning of a strategic alliance between BIDV and LSP founded on trust, shared values, and a joint commitment to progress and value creation, enabling them to explore more opportunities, overcome challenges and nurture sustainable growth and success for both entities. — VNS

Comments (0)