Société Générale Corporate & Investment Banking has signed a US$81.5mn export finance transaction with Ha Tien 1 Cement Company, Vietnam. The bank is mandated lead arranger, agent and sole lender.

The transaction will finance the delivery by German supplier Polysius, a subsidiary of Thyssen Krupp, of equipment and services for the construction and formation of a clinker production line in the Binh Phuoc Province.

The loan is guaranteed by the ministry of finance of Vietnam.

It comprises two tranches of €51.6mn and US$17mn to accommodate the features of the commercial contract signed with Polysius.

The German buyer credit is based on comprehensive credit insurance granted by German export credit agency, Euler Hermes. Ha Tien 1 Cement Company will therefore enjoy a repayment period of 10 years, while the interest is capitalised under the financing during the construction period.

This clinker production line plant makes up the bulk of the important investment made in the Binh Phuoc province by Ha Tien 1 Cement Company. The investment involves the main plant with a capacity of 1mn tonnes of cement per year, including clinker dispatching and a truck loading system. This investment represents a further step in satisfying part of the high demand for cement in the Vietnamese economy.

The bank has been a strong supporter of the cement industry in Vietnam and has notably arranged the export credit financing for the cement plant projects developed by Vietnam National Cement Corporation (But Son cement plant project, Hoang Mai cement plant project, Tam Diep cement plant project) and by Vinaconex (Cam Pha cement plant project, financed through nine German, Swiss, Japanese and French buyer credits).

In addition to the cement industry, Soci&eaute;té Générale has also arranged a number of export credits in Vietnam in fields such as transportation, power, pulp and paper.