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Citi provides $300m financing for Vietnam bauxite, alumina project
November 19, 2012 - 11:30 GMT
The Vietnam National Coal and Mineral Industries Holding Corp (Vinacomin) has agreed to a $300 million loan from investment bank Citi to finance the construction of a bauxite mine and an alumina refinery in the Central Highlands province of Lam Dong, Vinacomin announced late last week.
The Vietnamese ministry of finance has guaranteed the 13-year loan, which was insured by Nippon Export and Investment Insurance (NEXI).
“Under the terms of the agreement, Citi is the sole NEXI co-ordinator and the Joint Lead Arranger together with Mizuho Corporate Bank, Sumitomo Mitsui Trust Bank, and the Bank of Tokyo-Mitsubishi UFJ,” Vinacomin said.
It is the first joint bauxite and alumina project ever undertaken in Vietnam
“The $300 million loan agreement is the largest agreement ever for Vinacomin. This financing is particularly meaningful as it will be used to finance Vinacomin’s Lam Dong bauxite/alumina complex project, an important national development with direction and support from the Government,” Le Minh Chuan, president and ceo of Vinacomin, said. “The loan will have a significant impact on the success and effectiveness of the project.”
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