Vietnam Coal Co To Borrow $20 Million From Japans Mizuho Corp Bank
State-owned Vietnam National Coal & Mineral Industry Group, or Vinacomin, has signed a deal to borrow $20 million from Japan’s Mizuho Corp. Bank to expand operations, a Vinacomin official said Friday.
“This is the first time Vinacomin has borrowed from Mizuho, and (we) need the fund to buy more equipment for mining, as production is expected to grow more than 15% a year between 2007 and 2010,” said the official, who didn’t wish to be named.
Vinacomin has targeted raising coal production to 50 million tons by 2010, from 37 million tons in 2006, said the official, who works at the company’s headquarters in Hanoi.
Vinacomin’s deputy director Pham Bui Pha earlier Friday said in Vietnam News Agency report that the company will need total investment capital of $1 billion to $1.5 billion by 2010 to meet its expansion targets.
Vinacomin plans to seek bank loans, issue bonds and sell shares in its companies to raise that fund, Pha said in the report.
Vinacomin reported a revenue of VND27.5 trillion ($1.72 billion) in 2006, up 18.9% on year.
Information from: www.nasdaq.com
