Vietnam said it plans to raise $1 billion from foreign currency bonds and loans to help meet the $2.5 billion price tag for the country's first oil refinery.
The bonds would be issued in the domestic and overseas markets, the finance ministry said, adding it will conduct direct negotiations with foreign lenders for the loans.
"The capital raising process will depend on the implementation progress of the project," the finance ministry said in a report published on Friday on the government's Web site.
State-oil-monopoly Petrovietnam began building the Dung Quat refinery in the central province of Quang Ngai in 2005 after years of delays caused by fund shortages and design changes.
The refinery will have a production capacity of 130,000 barrels per day and its completion in 2009 will be a milestone for the country.
Vietnam produces around 350,000 barrels per day of crude oil but in the absence of any significant refining capacity currently imports almost all of its oil products.
The finance ministry said state-run Vietnam Bank for Development would manage the proceeds from the bond sales and loans.
In October 2005 Vietnam sold its debut eurobond worth $750 million, having received orders for more than $4.5 billion. Hanoi said the issue helped set a benchmark for the country's creditworthiness and similar issues by domestic firms.
Moody's sovereign rating for Vietnam is Ba3, Standard and Poor's is BB+ and Fitch's is BB.
Petrovietnam has said it plans to issue more than $500 million in overseas bonds next year to help fund a second oil refinery.
Source: Reuters
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