3 VN banks provide steel producer Hoa Phat with $75 mln loan

Hoa Phat Group, Vietnam’s biggest listed steel producer, has signed a syndicated loan for VND1.5 trillion (some US$75 million) with three Vietnamese banks to develop its steel complex, stage two, in northern Vietnam.

Hoa Phat Group, Vietnam’s biggest listed steel producer, has signed a syndicated loan for VND1.5 trillion (some US$75 million) with three Vietnamese banks to develop its steel complex, stage two, in northern Vietnam.

The Asia Commercial Bank (ACB), VietBank and Dai A Bank inked the seven-year financing deal with Hoa Phat on Dec. 17 in Hanoi, where the group is based. ACB acts as the head in this consortium financing.

A Hoa Phat representative said this syndicated loan marked a new step in the partnership among the two sides, paving the way for forthcoming projects between the group and the three banks.

A view of Hoa Phat Steel Complex (Photo: Courtesy of Hoa Phat Group)
A view of Hoa Phat Steel Complex (Photo: Courtesy of Hoa Phat Group)

The Hoa Phat Steel Complex, located in Kinh Mon District, Hai Duong Province, finished its VND5 trillion first stage this June, having supplying more than 232,000 tons of steel products so far. The second stage, which requires half of the first-stage investment, would increase the complex’s designed capacity to one million tons a year.

Hoa Phat Group earned VND12.8 trillion (US$609.5 million) in the first 11 months of the year, an increase of 56 per cent over the same period last year and exceeding its target for the year by 4%.

The corporation posted a profit of VND1.2 trillion ($57.1 million) during the period, representing 91 per cent of the year’s target.

Hoa Phat is currently building its first property complex on Giai Phong Street in Hanoi, which will contain offices for leasing and luxury apartments. The complex is set to open in March 2012.

ACB, VietBank and Dai A Bank are among major financial institutions in Vietnam. ACB came second in the VNR500’s private business ranking this year. VNR500 is an annual list of Vietnam’s 500 biggest companies ranked based on their turnovers, selected by VietNamNet online newspaper and Vietnam Report, a company specialized in company evaluation.

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