Signing of Credit Contract for Song Lam Cement Factory Project

(Baonghean.vn) - On April 15, in Ho Chi Minh City, Vietnam Joint Stock Commercial Bank for Investment and Development (BIDV), Vietnam Technological and Commercial Bank (Techcombank) and Song Lam Cement Joint Stock Company (under Vissai Group) signed a credit contract to finance the Song Lam cement factory project. Attending and witnessing the signing ceremony on behalf of Nghe An province were comrades: Ho Duc Phoc - Secretary of the Provincial Party Committee, Huynh Thanh Dien - Vice Chairman of the Provincial People's Committee and representatives of Ninh Binh province's leaders.

Song Lam Cement Factory Project, formerly Do Luong Cement Project, invested by Do Luong Cement Joint Stock Company, was implemented in Bai Son Commune, Do Luong District, Nghe An Province. Initially, the project had a capacity of 2,500 tons of clinker/day, equivalent to 910,000 tons of cement/year, invested by State-owned corporations (Housing and Urban Development Corporation (HUD), Vietnam Machinery Installation Corporation (Lilama), Construction Corporation No. 1).

However, due to the implementation of the enterprise restructuring project, the existing shareholders requested to withdraw capital, not continue to invest and transfer the project. In April 2014, The Vissai Cement Group was approved by the Prime Minister to transfer all shares in Do Luong Cement Joint Stock Company by negotiation. The Group changed the project name to Song Lam Cement Factory and increased the capacity to 12,000 tons of clinker/day, equivalent to 4 million tons of clinker/year, with a total investment of 9,132 billion VND in phase I of the project.

Comrade Ho Duc Phoc - Secretary of Nghe An Provincial Party Committee spoke at the signing ceremony

Hoang Phat Vissai Group Co., Ltd. has been a traditional customer of BIDV and Techcombank. Up to now, BIDV has accompanied and financed many major projects of the Group such as Line 1,2 Project - Vinakansai Cement Factory, Vissai Ha Nam Cement Factory... In addition, BIDV also finances capital for production and business activities as well as provides many modern banking products and services to the Group.

According to the credit contract signed at the signing ceremony, BIDV and Techcombank will finance the Song Lam Cement Factory project with a maximum value of VND 6,047 billion (BIDV finances VND 5,547 billion, Techcombank VND 500 billion), loan term of 12 years, at the same time BIDV and Techcombank will provide full banking products and services to support the investor to complete the project on schedule.

Signing ceremony between the parties

The Vissai Cement Group is a large enterprise and is gradually demonstrating its role and potential in the cement manufacturing industry. Currently, the Group is ranked second in domestic cement production and leading in cement production and export capacity. After being permitted by the Government to transfer from Do Luong Cement Joint Stock Company, The Vissai Group will invest in increasing the capacity of the Factory in 2 phases: Phase 1 (from 2015 - 2016) with a scale of 12,000 tons of Clinker/day, equivalent to 4 million tons of Clinker/year; Phase 2 (from 2017 - 2018) with a capacity of 2 million tons of Clinker/year.

The investment in the Song Lam Cement Plant project has increased the number of cement factories of the Group to 7, with a total expected capacity of 17 million tons of cement/year. The acquisition of the Song Lam Cement Project is part of the development strategy of The Vissai Group, creating Vissai's cement supply capacity in the Central region as well as domestically and for export, after the Group has affirmed its production and supply capacity in the North with cement factories in Ninh Binh, Ha Nam, Lang Son...

Speaking at the signing ceremony, Mr. Tran Bac Ha, Chairman of BIDV Board of Directors emphasized: “With the experience and capacity to build and operate large cement factories of Vissai Group, BIDV and Techcombank believe that the Song Lam cement project will be quickly completed and put into operation according to plan, creating jobs for local people and contributing to the economic development of Nghe An province in particular and the country in general”.

Le Thi Mong Ly

BIDV Bank Nghe An Branch