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Cement maker gets offshore financing
Thang Long Cement Joint Stock Co No 2 has secured US$240 million in loans from ANZ Bank, BNP Paribas and Societe Generale to finance construction of a cement plant in the northern province of Quang Ninh and a grinding plant in HCM City’s Hiep Phuoc Industrial Zone.
The Quang Ninh plant would have an estimated capacity to process 6,000 tonnes of clinker per day and produce 2.3 million tonnes of cement annually.
The total budget for both projects is $300 million, including the cost of the equipment procurement contract (EPC), local contribution and financing costs, such as interest and insurance during construction.
Each of the three foreign banks has committed $80 million in a debt package that includes buyer credits and a tied commercial loan. Loans will carry a term of 13 years, including a grace period of three years, at an undisclosed interest rate.
The EPC contract was signed in November 2007 with China’s Tianjin Cement Industry Design and Research Institute Co Ltd.
"Viet Nam’s cement industry has been critical to the country’s rapid economic growth in recent years and is expected to continue growing over the next decade," said Thuy Dam, CEO of ANZ Viet Nam.
VNN
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