Bank agrees to terms with Van Loc JSC on swap price product.
The Bank for Investment and Development of Vietnam (BIDV) and the Van Loc JSC (VLJ) have signed an agreement on the provision of liquefied petroleum gas (LPG) swap price products.
Under the agreement BIDV commits to providing LPG swap price products to help VLJ cope with risks of any volatility in the LPG price during this year and next, to a maximum of $30 million. BIDV will also provide VLJ with consultancy on other derivatives for LPG.
The agreement is conducted based on the success of the first LPG swap price product in Vietnam, when BIDV provided it to VLJ in August. The previous success assisted VLJ to be more proactive in its business strategy and reduce risks from any LPG price volatility.
VLJ was founded in 2006 with main business activities being the import and trading of LPG. It is one of only a few companies to meet all government requirements to be licensed by the Ministry of Industry and Trade to directly import LPG. It has a storage capacity of 3,000 tons.