Signing of the Credit Agreement for the Song Lam Cement Plant Project

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

The Song Lam Cement Plant project, formerly the Do Luong Cement project, was invested in by Do Luong Cement Joint Stock Company and implemented in Bai Son commune, Do Luong district, Nghe An province. Initially, the project had a capacity of 2,500 tons of clinker per day, equivalent to 910,000 tons of cement per year, and was invested in by state-owned corporations (Housing and Urban Development Investment Corporation (HUD), Vietnam Machinery Installation Corporation (Lilama), and Construction Corporation No. 1).

However, due to the implementation of the enterprise restructuring plan, the existing shareholders requested to divest their capital, cease further investment, and transfer the project. In April 2014, The Vissai Cement Group received approval from the Prime Minister to transfer all its shares in Do Luong Cement Joint Stock Company through a negotiated agreement. The Group renamed the project Song Lam Cement Plant and increased its capacity to 12,000 tons of clinker per day, equivalent to 4 million tons of clinker per year, with a total investment of VND 9,132 billion for phase I of the project.

Comrade Ho Duc Phoc - Secretary of the Nghe An Provincial Party Committee, delivered a speech at the signing ceremony.

Hoang Phat Vissai Group Co., Ltd. has been a long-standing customer of BIDV and Techcombank. To date, BIDV has provided financing for many of the Group's major projects, such as the Vinakansai Cement Plant's Line 1 and 2 projects, and the Vissai Ha Nam Cement Plant. In addition, BIDV has also provided financing for the Group's production and business activities, as well as supplying many modern banking products and services.

According to the credit agreement signed at the ceremony, BIDV and Techcombank will finance the Song Lam Cement Plant project with a maximum value of VND 6,047 billion (BIDV financing VND 5,547 billion, Techcombank VND 500 billion), with a loan term of 12 years. BIDV and Techcombank will also provide a full range of banking products and services to support the investor in completing the project on schedule.

Signing ceremony between the parties

The Vissai Cement Group is a large enterprise that is gradually demonstrating its role and potential in the cement manufacturing industry. Currently, the Group ranks second in domestic cement production and is the leader in cement production and export capacity. After being granted permission by the Government to transfer ownership from Do Luong Cement Joint Stock Company, The Vissai Group will invest in increasing the plant's capacity in two phases: Phase 1 (from 2015 - 2016) with a capacity of 12,000 tons of clinker per day, equivalent to 4 million tons of clinker per year; Phase 2 (from 2017 - 2018) with a capacity of 2 million tons of clinker per year.

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

Speaking at the signing ceremony, Mr. Tran Bac Ha, Chairman of the Board of Directors of BIDV, emphasized: “With Vissai Group’s experience and capacity in building and operating large cement plants, BIDV and Techcombank are confident that the Song Lam cement project will be quickly completed and put into operation according to schedule, 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