Hanoi, August 13, 2015 - The Bank for Investment and Development of Vietnam JSC (BIDV), Bac A Bank and Tan Thang Cement Joint Stock Company signed a credit agreement to finance the Tan Thang’s cement plant project. Leaders of Nghe An province, the Ministry of Construction, Ministry of Natural Resources and Environment attended.

 

​The Tan Thang cement plant with a capacity of 5,000 tonnes of clinker per day, equivalent to 1.98 million tonnes of cement per year is built in Quynh Luu district, Nghe An province in the North Central region of Vietnam. It is about 12km from National Highway 1A; 30km from Nghi Son deep-water seaport; 20 km from Dong Hoi seaport. This is a key project of Nghe An province, listedin the Plan on development of Vietnam cement industry to 2020 with orientations to 2030 approved by the Prime Minister in Decision No. 1488/QD-TTg dated August 29, 2011. Nghe An is one of the few provinces in Vietnam havingvery large stocks of limestones and claysfor producing cement. Given the existing mineral potential, Nghe An will become one of the big centers of building and industrial materials in North Central region in the future.

Outputs of the project will be PCB 50 and PCB 40 cement of high quality and marketedin ​​Nghe An, Ha Tinh, south central region, Central Highlands, the Southeast and Southwest regions and 30% of the products will be exported to Laos and other countries.

According to the Ministry of Construction, cement consumption of the entirecement industry in 2015 isestimated at 72-74 million tonnes, up 1.5 to 2% compared to 2014. In particular, domestic consumption is about 53-54 million tonnes; and export at 19-20 million tonnes. In the first 6 months of 2015, cement consumptionwas estimated at 34.16 million tonnes, reaching 47% of the plan set for 2015 (domestic consumption at 25.97 million tons and export at 8.19 million tonnes).

The cement supply of the country until 2016 is forecast to ensure the consumption demand, with an amount of 15-16 million tons per year for export and a stock of 10 - 15% set aside due to topographical features, climate to stabilize the country's cement market, particularly the Southern region.

Through the evaluation of the project economic efficiency, financial capacity, experience, management and administration of the developer, the technology and output market, the two banks have trust in the success of the project and developer.

The project investment value totaledVND4,544 billion, includingdeveloper’s equity capital of VND1.071 billion contracts, andmaximum loan value of VND3,150 billion (BIDV is the focal point to arrange VND 2,400 billion, and BacABank finances VND750 billion). Loan tenor is up to 12 years. BIDV and financing banks will provide full banking services and products to assist the developer to complete the project on schedule.

Addressing the ceremony, Mr. Tran Bac Ha, Chairman of BIDV, said:“BIDV believes that given the building and operational capacity, the company and its shareholders will quickly complete theproject and put the plan into operation on schedule, create jobs for local people and contribute to the economic development of Quynh Luu districtin particular and Nghe An province in general.

 

For further information, contact:

Branding and Public Relations

Tel: (+84) 4 2220 0485

Hotline: 19009247

Website: www.bidv.com.vn