Displaying items by tag: Loan

Pakistan: Fauji Cement has taken out a loan of US$212m from a consortium lead by Habib Bank Limited. The Business Recorder newspaper has reported that the funding will go towards cement plant expansion projects with a total cost of US$339m. Fauji Cement plans to expand its plant in Dera Ghazi Khan, Punjab, while its subsidiary Askari Cement plans to expand its plant in Nizampur, Khyber Pakhtunkhwa. The company says that the projects will together increase its installed cement production capacity to 10Mt/yr.

Nepal: Udayapur Cement has commenced a US$4.2m upgrade and capacity expansion of its cement plant at Jaljale. The work includes replacing the shell of its 20m rotary kiln by the end of February 2021 and installing a reinforcement suspension preheater system, according to the Kathmandu Post newspaper. It will expand the plant’s capacity by 38% to 0.4Mt/yr from 0.29t/yr. The plant’s current equipment dates to 1988. Company spokesperson Laxman Pokharel said "Since the machines are old, we face frequent problems." He added that this has led to increased costs.

The Nepal government has agreed to loan Udayapur Cement US$34.4m, 80% of the project’s budget.

Spain: Cementos Molins has secured a renewal of its sustainability-linked loan until December 2026 and increased its limit to Euro300m. The loan is linked to reductions in Cementos Molins’ CO₂ emissions.

Chief financial officer Jorge Bonnin said “This innovation, together with the robust financial position and the strong cash generation, enables the development of the profitable and sustainable growth strategy through markets consolidation and development in new markets.”

Colombia: Dow Jones has named Grupo Argos in its Sustainability Index 2021, the company’s ninth time appearing in the ranking. It achieved its highest ratings in materiality, risk management, environmental reporting, climate change strategy, social reporting and human rights. The group said that the listing constitutes its recognition as the most sustainable cement company in the world. Its sustainable initiatives include offering collection of its used cement bags, supplying all the electricity for its Colombian operations from renewable sources and currently having three credit facilities linked to environmental, social and governance indicators.

Legal and sustainability vice-president Maria Isabel Echeverri said “At Argos, we are greatly satisfied with this result which places us as a world benchmark in sustainability and reassures our commitment to closing gaps and implementing best practices in social, environmental, financial and corporate governance matters. This drives us to continue moving forward in creating social value to build the dreams of housing and infrastructure for millions of people.”

Mexico: Cemex has successfully closed a US$3.25bn syndicated credit agreement. The group said that it used the proceeds to repay its previous US$2.65bn facilities agreement. The new agreement will require repayment in November 2026. As the facility is worth 23% more than its previous one, the company said that it will have a stronger liquidity position than previously, resulting in a favourable company risk and credit rating situation.

CEO Fernando Gonzalez said "This new credit agreement represents a major milestone in our path to investment grade as it is our first major syndicated unsecured bank agreement since 2009. It showcases Cemex’s continued access to diversified funding sources while further aligning our financing strategy to our leadership in addressing climate change.” He added “We are starting a new chapter for the company where we shift our strategic balance a bit more towards growth and the advancement of our Climate Action goals.”

Ukraine: NEQSOL Holding Ukraine has filed an application to the Antimonopoly Committee of Ukraine (AMCU) to acquire a stake in Ivano-Frankivskcement. The group will take a loan from ‘leading international’ banks to pay for the stake.

NEQSOL Holding Ukraine manager Volodymyr Lavrenchuk, said “We are hopeful for an approval of the new deal by the AMCU so that we can welcome the high-tech enterprise Ivano-Frankivskсement into the NEQSOL Holding group of companies. We recognise the long-time outstanding results achieved by the Ivano-Frankivskсement management team and staff, who have created one of the most state-of-the-art cement plants in Europe.” He added “Our group of companies has successful experience in financing, including engagement of international financial institutions, which will help to secure the required investments for maintaining a high rate of growth of the cement plant.”

Mexico: Cemex has announced the release of the collateral on its debt under its main bank agreement and senior secured notes. The release follows Cemex’s reporting of two consecutive quarters with a consolidated leverage ratio of 3.75x or less.

CFO Maher A-Haffar said “We are very pleased with this momentous milestone, which is a culmination of the substantial strengthening of our capital structure and paves the way towards an investment grade rating. This will simplify our debt structure and reduce the cost of managing our debt stack.”

Thailand: SCG Packaging has taken a US$148m four-year loan from Bank Ayudhya. The loan is subject to environmental, social and governance (ESG) criteria and key performance indicators. The loan’s interest rate is tied to the company's sustainability performance targets, namely reducing greenhouse gas emissions, managing water resources and increasing the sales portion of its Green Choice label products and services. Bank Ayudhy will serve as sustainability coordinator, with the ability to adjust it down annually if sustainability goals are met.

Vietnam: SCG Packaging plans to invest US$354m to establish a new 370,000t/yr packaging plant in Vinh Phuc province. The Tuoi Tre newspaper has reported that operations at the plant will commence in early 2024. The product will be Vina Kraft Paper brand bags. The Siam Cement Group (SCG) subsidiary will finance the expansion through cash and debt.

China: Tianrui Group Zhengzhou has repaid its previously outstanding loan facility. Reuters News has reported that parent company China Tianrui Group says the company has withdrawn a new US$15.5m loan.