Citi group finances Vinacomin for bauxite project
Citi Vietnam and the Vietnam National Coal and Mineral Industries Holding Corporation (Vinacomin) on November 14 signed a contract on a loan of US$300 million to finance the construction of bauxite mining and alumina project in the Central Highland province of Lam Dong.
The 13-year loan is guaranteed by the Vietnamese Ministry of Finance and insured by the Japanese agency Nippon Export and Investment Insurance (NEXI).
Under the terms of agreement, Citi is the sole NEXI co-ordinator and the Joint Lead Arranger together with Mizuho Corporate Bank Ltd, Sumitomo Mitsui Trust Bank Limited, and the Bank of Tokyo-Mitsubishi UFJ Ltd.
This is the first bauxite and alumina project in Vietnam, and it is critical to the development of these resources in the country for sales to domestic and export markets, and for the socioeconomic development of the Central Highlands.
The financing deal marks the first time that NEXI has provided untied loan insurance for a bauxite and alumina project.
Le Minh Chuan, President and CEO of Vinacomin said the US$300 million loan agreement is the largest ever for Vinacomin. It is particularly meaningful as it will be used to finance Vinacomin's Lam Dong Bauxite – Alumina Complex Project, which is supported by the Government".
The loan will have a significant impact on the success and effectiveness of the project, Chuan said