REPORTS SIGNING OF FINANCIAL SUPPORT CONTRACT FOR OIL AG
The Bangchak Petroleum Plc (BCP) released that the company, in cooperation with the Thai Investment & Securities Plc (TISCO), will give a financial support of Bt1,000 million worth to its agencies whoes qualifications meet criterias of BCP and financial institutions. Under such policy, BCP will undertake the construction of all oil stations on the land owned by its agencies. The company provides 7 types of the stations for selection according to the land size, location, capital and the supporting business required by the dealers. It also helps the agencies in seeking the least cost of funds (MLR) and acts as a guarantor for the loan. With this special offer, the term of loan is as long as 10 years with a grace period during the construction. The repayment will start when construction of the oil stations has been completed and in operation. In the event that the agencies no longer want to continue the repayment, BCP will take over the business and continue the repayment instead. Earlier, the company has made a contract for a loan project like this worth Bt1,350 million with Siam Commercial Bank Plc (SCB) and now is negotiating loan agreements worth Bt2,000 million with other two leading financial institutions. If both issues are successful, the company will be able to provide a financial support as high as Bt4,350 million for establishment of new oil stations. This policy will not only facilitate the BCP's agencies, but also helps expand the oil stations rapidly and eventually boost the oil sales.