Vietnam National Coal-Mineral Industries Group will supply Japan with as much as 1.5 million metric tons of steelmaking coal a year in return for a five-year, $150 million loan from the nation’s state lender.
The interest rate offered by Japan Bank for International Cooperation is lower than the normal commercial rate of 30 percent for the whole term, according to a statement on the Vietnamese government’s Web site. It’s the first loan the state- owned miner, known as Vinacomin, has taken from the Japanese government, it said.
Vinacomin has substantial need of capital to fund its coal production projects in coming years, said General Director Tran Xuan Hoa, the government said in the statement. The group plans to sell as much as $500 million of bonds overseas this year and expects to sign funding agreements worth $200 million with seven lenders, according to the statement.
Vinacomin has $218 million in loans and bonds outstanding, according to data compiled by Bloomberg. Standard & Poor’s gave the group a BB rating last month, the risk assessor’s second- highest speculative grade.
Source: Bloomberg