The Industrial and Commercial Bank of China (ICBC) will provide a credit package worth US$97m to the Tay Ninh Cement Plant, according to the agreement signed July 24 between the ICBC and France’s BNP Paribas, acting as a broker bank in the deal, and Vietnam’s Construction Material Corporation 1.
The package includes a US$79.1m export credit funded by the China Export & Credit Insurance Corporation (Sinosure) and a commercial loan worth $18m, repayable over a period of 13 years.
The loans will be used to finance the EPC contract that the China’s Tianjin Cement Industry Design and Research Institute signed to supply technology for the Tay Ninh Cement Company.
Located in the southwestern Tay Ninh province, the cement plant has total investment of VND2.63 trillion ($178.6m). Once put into operation by July 2008, the plant will have the capacity to turn out 1.5Mta of cement.