Japanese Bank to Lend US$20Mln Vinacomin
Japan’s Mizuho Corporate Bank, Ltd will loan Vietnam National Coal, Mineral Industries Group (Vinacomin) US$20 million to buy new equipment and expand output by 15-20 per cent over the next five years.
The Bank and Vinacomin signed a 5-year term credit agreement, Mar 22 in Hanoi, after Vinacomin completed studies on producing high-quality and non-smoke coal.
“Mizuho Corporate Bank opened the Hanoi branch ten years ago to give financial support to Japanese companies in Vietnam. However, as a finance firm also wants to facilitate Vietnamese businesses such as Vinacomin,” Koji Asano, general director of Hanoi branch said.
Pham Bui Pha, deputy director of Vinacomin, said with new equipment and higher capacity the group is expected to increase output by 15-20 per cent.
Vinacomin plans to churn out 47-50 million tons of coal by 2010, along with putting many new factories into operation, and possibly widening production bases in Laos and Cambodia.
To finalize the target, Vinacomin will need $1-1.5 billion in new capital, part of which will be mobilized via loans, bonds and issuing shares. (VNS)
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