Tuesday, October 02, 2007

ANZ announces $120 million expansion loan to Vietnam's TISCO

HAI NGUYEN - Australia and New Zealand Banking Group Limited (ANZ) yesterday announced a US$120 million, 13 year loan agreement to finance Phase 2 of the Thai Nguyen Iron and Steel Corporation’s (TISCO) Production Expansion Project.

The loan is expected to help TISCO increase its steel production capacity by 500,000 tonnes per year as well as produce their own billets for steel manufacturing. This represents a great savings opportunity for TISCO, as the cost of producing steel billets domestically is much lower than the cost of importing them: the import price is currently around $560 per tonne, while local production only costs $360.

To date, ANZ has financed many local projects, especially in the infrastructure sector, including the Phu My 2.2 thermal power project, Thu Duc water treatment facility, Dung Quat oil refinery, and A’ Vuong hydroelectric power station. — VNS