Eight banks grant credit of VND35 trillion to Hoa Phat Group’s steel project

Eight commercial banks have signed a deal with Hoa Phat Dung Quat Steel JSC, granting credit of VND35 trillion (US$1.53 billion) to its Hoa Phat Dung Quat 2 Steel Integrated Complex Project.

Eight banks grant credit of VND35 trillion to Hoa Phat Group’s steel project

The signing ceremony took place on March 17 in Ha Noi.

Eight commercial banks in the deal comprise the deal initiator Vietcombank, as well as BIDV, VietinBank, Agribank, MB, TPBank, VPBank and MSB.

Pham Quang Dung, chairman of Vietcombank, revealed that his bank and the other banks saw bright prospects for the project’s viability.

Accordingly, the banks have committed themselves to financially supporting it with credit of VND35 trillion.

Speaking at the signing ceremony, Tran Dinh Long, chairman of Hoa Phat Group JSC, underlined the project as the group’s most significant programme with a total outlay of VND85 trillion ($3.72 billion) and a capacity of 5.6 million tonnes of hot rolled coil (HRC) steel per year.

He believed that his group would become the most significant domestic HRC steel producer once the project came into operation.

 “With the project, Hoa Phat Group aims to produce high-quality HRC steel and position itself as the largest HRC steel producer in Viet Nam,” said the chairman.

The project is expected to raise the annual steel output of the group to 14 million tonnes and create 8,000 new jobs.

                                                                                                                                                                                             HPG News