PetroVietnam Finance Lends Vinacafe Buon Ma Thuot $42.2 Million
PetroVietnam Finance Co., a unit of Vietnam Oil & Gas Group, will lend coffee company Vinacafe Buon Ma Thuot Co. up to 750 billion dong ($42.2 million) to fund development of a plantation.
Vinacafe will use the money to buy urea and other products from PetroVietnam Fertilizer & Chemical Joint-Stock Co., the country’s biggest-fertilizer producer, the lender said in the e-mailed statement today.
“We offer Vinacafe an interest rate of 6 percent for this one-year loan as it is part of the government loan subsidy program,” PetroVietnam Chief Executive Officer Tong Quoc Truong said in a phone interview. “This is a very good rate compared with the lowest rate of 10 percent we have offered to others.”
Vietnamese lenders made 255 trillion dong of loans to businesses between Feb. 1 and April 23, after the government started a subsidy program to bolster the slowing economy. The government said in January it will offer 17 trillion dong to lenders to reduce the cost of corporate loans by 4 percentage points.
To contact the reporter on this story: Nguyen Dieu Tu Uyen in Hanoi at Uyen1@bloomberg.net.