Skip to content
AidData logo

Overview

Bank of China (Ho Chi Minh City Branch) contributes to $168 million syndicated loan for Paper Mill Construction Project

Commitments (Constant USD, 2023)$22,087,112
Commitment Year•2016Country of Activity•Viet NamDirect Recipient Country of Incorporation•Viet NamOverseas Jurisdiction•Viet NamSector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Implementation

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 1, 2016
Start (actual)
Jun 1, 2016
First repayment
Jul 1, 2018
Last repayment
Jun 30, 2023

Geospatial footprint

Map overview

Visualizes the AidData-provided feature geometry for this project.

Loading map…

The purpose of the project was to construct a containerboard machine — with the capacity to produce 500,000 tons of recycled containerboard per year — at a paper mill that is located within My Phuoc Industrial Park in Binh Duong District and Binh Duong province. More detailed locational information can be found at https://www.openstreetmap.org/way/759187612#map=15/11.1294/106.5958

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownershipAt least 25% Chinese ownership

Funding agencies

State-owned Commercial Banks

  • Bank of China (BOC)

Cofinancing agencies

Private Sector

  • Bangkok Bank Public Company Limited (BBL)
  • Cathay United Bank
  • Mega International Commercial Bank Co., Ltd. (formerly International Commercial Bank of China)

State-owned Commercial Banks

  • China Bank of Communications (BoCom or BoComm)

Receiving agencies

Private Sector

  • Cheng Yang Paper Mill Company

Implementing agencies

Private Sector

  • Cheng Yang Paper Mill Company

Guarantors

Private Sector

  • Nine Dragons Paper Limited

Loan desecription

BOC and BOCOM contributions to $168 million syndicated loan for Paper Mill Construction Project

Grace period•2.5 yearsInterest type•UnknownMaturity•7.5 years

Narrative

Full Description

Project narrative

On July 4, 2016, Bank of China (BOC), Bank of Communications (BoCom), Bangkok Bank, Mega International Commercial Bank Central Branch, and Cathay United Bank signed a $168 million syndicated loan with Cheng Yang Paper Mill Co., Ltd for a Paper Mill Construction Project. BOC contributed $81 million from its branches in Ho Chi Minh City, Grand Cayman, Dong Guan and Macau (as captured via Records ID #63303, #110401, #110402, and #110403). BoCom's estimated contribution is captured via Record ID #86021. Loan repayment was scheduled to begin at the end of 2018 in ten equal installments each six months. Nine Dragons Paper Limited issued a corporate guarantee in support of the loan. The purpose of the project was to construct a containerboard machine — with the capacity to produce 500,000 tons of recycled containerboard per year — at a paper mill that is located within My Phuoc Industrial Park in Binh Duong District and Binh Duong province. The project commenced on or around June 1, 2016. It is not clear whether or when this project was completed.

Staff comments

1. The Chinese project title is 越南正阳纸厂二期. 2. Nine Dragons Paper Limited is a publicly listed (private) paper manufacturing company in Mainland China, engaging in the manufacturing of containerboard products which include linerboard, duplex board as well as pulp. Its CEO and largest shareholder is Mrs. Zhang Yin. Nine Dragons Paper Limited paid $22.8 million to acquire a 60% ownership stake in Cheng Yang Paper Mill Co., Ltd from Best Shine International Development, a Cayman Islands-based subsidiary of Taiwanese firm Taiwan Pulp & Paper in 2008. Then, in June 2015, Nine Dragons Paper Limited increased its ownership stake from 60% to 65%. Many large containerboard producers from China have relocated due to Vietnam due to rising land and labor costs at home. 3. The individual contribution from each branch of Bank of China to the syndicated loan is unspecified. For the time being, AidData assumes that each branch provided an equal share of Bank of China's $81 million contribution ($20.25 million each).