Cordiant Capital Inc is to provide USD27 million to fund the expansion of one of the most important ports in Vietnam.
Cordiant Capital Inc is to provide USD27 million to fund the expansion of one of the most important ports in Vietnam.
The loan, provided by Cordiant on behalf of the Infrastructure Crisis Facility Debt Pool, has been agreed with Cai Lan International Container Terminal (CICT) to help fund the construction of its new deep water container-handling facilities needed to keep up with the fast growing shipping volumes in North Vietnam.
The Infrastructure Crisis Facility Debt Pool was set up by the World Bank’s private sector arm, the International Finance Corporation (IFC), to help make up for the collapse in emerging market infrastructure lending caused by the global banking crisis.
The IFC estimates that USD21 trillion will be needed to fund emerging market infrastructure projects in the next ten years.
The Infrastructure Crisis Facility Debt Pool loan to Cai Lan is part of a broader USD155 million, 11 year financing for the terminal.
David Creighton, President and CEO of Cordiant Capital, says: “Vietnam has been a real success story, but the lack of modern port infrastructure facilities have become a constraint on the country’s export-led growth.
“Port capacity in Northern Vietnam is effectively full.”
These new deep water facilities are strategically important to Vietnam. It needs more deep water port capacity for its export industry to stay competitive. The development at Cai Lan will remove a bottleneck that could have threatened Vietnam’s position in regional and global supply chains.”
We are delighted to have played a role in this fundraising.”
Cai Lan Port is located near Vietnam’s capital Hanoi and is one of the most important ports serving the North of the country. According to CICT, container volume handled by ports in North Vietnam is increasing at over 20% per year and is predicted to outgrow terminal capacity by 2011.
The new port facilities are due to be built by the end of 2011.
Other lenders involved in the USD155 million funding include the International Finance Corporation (IFC); FMO, the Netherland’s Development Finance Institution; and Proparco, the French Development Finance Institution.
In 2009, Cordiant agreed a USD10 million financing for Cai Lan, a greenfield container terminal in the Cai Mep Port serving the Ho Chi Minh City area.
