Challenge - explained

Vietinbank as a top 4 bank in Vietnam and this bank has a large exposure in cement industry in Vietnam. One of the market concerns is the oversupply of the cement in Vietnam, especially in the North. Its existing borrower Xuan Thanh Cement JSC proposed for a large debt financing amounting to US$100m for their expansion with additional capacity of 1.5m MTPY in Ninh Binh province. It is the requirement from Vietinbank to have an independent assessment for the cement market especially the oversupply in the North and the undersupply in the South of Vietnam and how the project could be fitted in the landscape of the sector among other factors including logistics and competition dynamics

Solution:

FiinGroup was appointed by VietinBank to work with Xuan Thanh Cement., Jsc to conduct: Research and assessment on Vietnam cement industry prospect, focusing on supply in the Central and consumption market in the South. Independent appraisal and credit review of the cement expansion in the central of Vietnam Providing report on Xuan Thanh Cement and supporting credit financing decision of Vietinbank

Results:

NIPA acknowledged receipt of the final report from FiinResearch and gave a feedback of the high quality report. The deliverables were presented to both the Company and Vietinbank for their further assessment and negotiations. Xuan Thanh successfully obtained a credit approval financing its expansion and maintained its position as one of top 3 cement players in Vietnam