International creditors offer huge loans to Tay Ninh Cement, Vietnam

International creditors offer huge loans to Tay Ninh Cement, Vietnam
Published: 26 July 2006

BNP Paribas of France and China’s ICBC on Monday signed a loan agreement with Vietnam’s FICO to provide the latter a syndicated loan of US$97.1 million to build Tay Ninh Cement Factory.

Under the deal with BNP Paribas acting as the lead manager of the loan, the cement factory will receive US$79.1 million as export credits and a commercial loan of US$18 million with a term of 13 year.

General director of FICO Tran Phuong Tung said at the signing ceremony in Hanoi that the cement factory, with its annual capacity of 1.5 million tons, is included in the national development program for the cement industry now and 2020. The project is owned by the Tay Ninh Cement Joint-stock Co., a subsidiary of FICO, and is also a focal project for southern provinces, he said.

The project requires VND2,625 billion, or US$178.6 million. Shareholders have pledged to contribute VND525 billion, or 20% of total investment, while the State provides VND699 billion in preferential credits.

The factory is expected to start operation after two years of construction.