Bank of China provides $69 million loan for Dong Lam Cement Plant Construction Project

Project narrative

On December 10, 2009, Bank of China and Dong Lam Cement Joint Stock Company signed a $69,007,737.05 loan agreement for the Dong Lam Cement Plant Construction Project. The loan carries the following borrowing terms: a 7-year maturity, 3-year grace period, and an interest rate of LIBOR plus a 2.5% margin. The loan’s first repayment date was June 1, 2013 and its last repayment date was December 1, 2019. The Government of Vietnam issued a sovereign guarantee in support of the loan. The proceeds of the loan were to be used by the borrower to partially finance a commercial (EPC) contract (worth USD 81.19 million plus EUR 9.15 million) between Dong Lam Cement Joint Stock Company and Tianjin Cement Industry Design & Research Institute Co., Ltd. (TCDRI), which was signed in August 2009. The purpose of the project was to construct a cement plant — in the province of Thua Thien Hue, about 30 km north-west of the old imperial city of Hue — with the ability to produce 5,0000 tons of cement per day. TCDRI was the contractor responsible for implementation. Project implementation commenced on May 2012 and the project was officially completed and handed over to its owner on March 15, 2014.