ICBC contributes $79.1 million to $97.1 million syndicated buyer’s credit loan for Tay Ninh Cement Plant Construction Project

Project narrative

On July 24, 2006, the Industrial and Commercial Bank of China (ICBC) and BNP Paribas signed a $97 million synidcated loan agreement with Building Materials Corporation No.1 (FICO) — a Vietnamese state-owned enterprise — for the Tay Ninh Cement Plant Construction Project. The loan was provided in two separate tranches: (1) $79.1 million buyer’s credit loan (BCL) insured by Sinosure and (2) an $18 million commercial loan with a 13-year term. The Vietnam Ministry of Finance also provided a guarantee. The proceeds of the syndicated loan were to be used to partially finance an EPC contract between Tay Ninh Cement Joint Stock Company — a FICO subsidiary — and Tianjin Cement Industry Design and Research Institute Co., Ltd. (Sinoma TCDRI). The purpose of the project was to construct a cement plant in Tan Hoa Commune, Tan Chau District, Tay Ninh with the capacity to produce 1.5 million tons of cement per year. Construction started on November 28, 2006. The plant was ignited and put into production in December 2008. It successfully produced, packaged, and shipped cement in April 2009. It also obtained a pre-acceptance certificate from the project owner in October 2009. The project was officially handed over to the project owner and put into commercial operation on December 28, 2009.