BSR seeks $600 million loan for Dung Quat Refinery expansion

Binh Son Refining and Petrochemical Joint Stock Company (BSR) has officially issued a Request for Proposal (RfP) to international banks and financial institutions to arrange a loan of approximately $600 million. This funding is intended to cover about 40% of the total investment required for the upgrade and expansion project of the Dung Quat Refinery.

The total investment for the project is estimated at nearly $1.5 billion. BSR is seeking various financing structures, including loans insured by the Multilateral Investment Guarantee Agency (MIGA) of the World Bank Group, loans insured by Export Credit Agencies (ECA) linked to EPC contracts, or offshore commercial loans. This approach aims to optimize mobilization costs and increase financial flexibility.

Upon completion, the project is expected to increase the refinery's processing capacity from 148,000 barrels of crude oil per day to 171,000 barrels per day. It will also upgrade product quality to Euro V standards and enhance the facility's ability to process various types of domestic and imported crude oil. BSR expects to select a Mandated Lead Arranger (MLA) by the fourth quarter of 2026, with disbursements projected to begin in the third quarter of 2027.