Displaying items by tag: Finance
China: China's state auditor said that it has found irregularities in the operations of China Resources, including the misuse of funds, the use of an improper bidding procedure and failure to seek government approval for a merger. The audit results came after the government started investigating the activities of several former executives of the group.
An audit of China Resources' 2012 financial statements showed that China Resources Power Holdings Co didn't conduct public bidding for 586 projects it awarded that were valued at US$1.9bn. Instead, it had invited specific bidders to decide on contractors and service providers, according to the National Audit Office. Moreover, five power-generating facilities of China Resources Power were allegedly constructed or put into operation in 2012 without government approval. The facilities had power sales of US$45.4m in 2012.
Similarly, a US$28.1m merger involving China Resources Cement Holdings was made in 2012 without government assessment or approval. The audit also found that US$209m raised by two trust products that was intended to boost liquidity at the trust company was instead invested in property development by the borrowers. In 2012, the group and its affiliated units allegedly spent US$338,863 playing golf.
Government loan of US$67m would help Industria Nacional del Cemento to reactivate contracts
11 June 2014Paraguay: The Paraguayan Congress is set to approve a US$67m loan to state-owned cement producer Industria Nacional del Cemento (INC) to resume investment in its Villeta and Vallemi cement plants. The funding will allow INC to continue its US$25.7m contract with FLSmidth to convert its fuel from fuel oil to coke as well as its US$6.3m contract with Claudius Peters, according to Esmerk news service. Other contracts are with Haver & Boecker, for US$7m to install two bagging facilities, and with Daca to optimise an agricultural lime plant, which is suspended due to legal issues, for US$5.9m. Overall, the investments that will be made with the loan will save INC US$30m/yr.
European Bank for Reconstruction and Development extends loan to US$65m for Senj Sant cement plant
01 May 2014Mongolia: The European Bank for Reconstruction and Development (EBRD) is extending a US$65m loan to Senj Sant to build a cement plant as part of a financing package dating from May 2013, which included a US$20m equity investment. Construction at the 1Mt/yr plant situated in southern Mongolia began in April 2013
"The EBRD's long-term finance, including equity, not only helps us build the first cement plant in Mongolia using the environmentally-friendly dry process, but also supports the company in raising business standards to international levels," said
CEO of Monpolymet Group, Munkhnasan Narmandakh. Senj Sant is a subsidiary of Monpolymet Group.
Development Bank of Ethiopia signs US$33m loan agreement with Habesha Cement to build plant
11 December 2013Ethiopia: The Development Bank of Ethiopia (DBE) has signed a loan agreement with Habesha Cement for US$33m to build a 1.4Mt/yr cement plant at Holeta in Oromia State. Additional loan agreements were also signed in late November 2013 between Habesha, the DBE and the Preferential Trade Area (PTA) Bank, the financial arm of the Common Market for Eastern & Southern Africa (COMESA). The PTA Bank is co-financing the Habesha project by lending US$50m.
According to Addis Fortune, Habesha is now seeking a letter of credit to allow equipment for the cement plant to be imported. Chinese engineering firm Northern Heavy Machinery Industries have been hired to import and erect machinery for US$80m.
Previously the DBE approved a loan for US$83m to cover 70% of the project costs but it withdrew the offer in early 2013. The current DBE loan only covers 30% of the project costs. Other investors, including PPC and South Africa's Industrial Development Corporation (SAIDC) paid US$21m for nearly half of Habesha Cement in 2012. The plant was originally scheduled to start production by 2012.
Colombia: Cementos Argos has raised US$750m from the preferred shares-issuance in the local and international markets, according to a letter to the Colombian financial services watchdog Superfinanciera. The share-issuance was oversubscribed, with demand amounting to US$1.18bn from more than 14,000 Colombian and international investors.
Of the interested investors, 65% were local investors and 35% were from abroad. Additionally, 58% of the interested parties were institutions and 42% were individuals. The proceeds from the transaction will be used by the company to support its growth in the cement and concrete industry.
Votorantim plans US$3bn IPO
22 December 2012Brazil: Brazil's biggest cement producer, Votorantim Cimentos, is preparing an initial public offer (IPO) to raise US$3bn.
Votorantim is looking to acquire new assets in North America, Africa and South America. The proceeds from the IPO, the biggest for Brazil since Banco Santander Brasil in 2009, would go into funding its expansion plans.
The cement unit of Brazil's Grupo Votorantim, controlled by the Ermirio de Moraes family, completed a swap of its 21.2% stake in Cimpor Cimentos de Portugal in June 2012. Votorantim Cimentos has hired Banco Itau BBAand JPMorgan Chase & Co to manage the deal and will include other banks.