Australia and New Zealand Banking Group Ltd and Calyon yesterday committed US$96.4m to the Ha Tien 2.2 Cement Production Line project.
Total investment capital is estimated at US$190m, of which equity accounts for 20 per cent and loans 80 per cent. ANZ and Calyon are equally financing the loan. The loan term is 13 years, which includes a grace period. However, the duration of the grace period and the interest rate were not released.
Ha Tien No 2 Cement Company will use the loan to finance the construction of a new production line in southern Kien Giang Province. The loan will also be used to part-finance the construction of an additional clinker production line, capable of producing 4,000tpd and a cement grinding and packaging line with designed capacity of 600,000t of PCB 40 cement per year.
ANZ and Calyon have invested heavily in infrastructure development in Vietnam. Projects financed by the banks include the Nhon Trach Power Plant, PetroVietnam Tisco, the Ninh Binh Nitrogenous Fertiliser Plant, Phu My Bridge, the Hiep Phuoc Port and Phu My-Ca Mau pipeline.