Kathmandu, Sept 4 . The largest project loan syndication in the history of the Nepalese Banking industry that of Hongshi Shivam Cement has successfully come ti a closure. The syndication is led by NMB Bank with NPR 6.75 Billion, co- Lead Bank by Nepal Investment bank with NPR, 4 Billion and member banks comprsing of Prabhu bank NPR 3 Billion, everest bank NPR 1.25 Billion and Nepal SBI bank NPR 1 Billion. The syndication is secured by financial Bank Gurantee of Bank of china and china Minsheng Bank and the loan tenure stand at 7 years.
Hongshi Shivam Cement is a joint venture of Hong Kong Red Loin Cement No 3, a subsidiary under Hongshi Holding Ltd with 70 % stake and Shivam Holding Pvt Ltd. A subsidairy under Shivam cement Limited with 30 % shareholding.The company has received approval from invesment Boards nepal and Nepal Rastra Bank to inject Foreign Direct Investment for the equity portion of Nepalese rupees 9.82 Billion.
Under full capacity, the company will produce 6,000 tones per day clinker and cement (i.e 120,000 cement bags per day).The factory will also be self producing 12 MW of electricity through waste heat recovery out of the total power required of 50 MW.
Speaking at the press conferece, held to mark the event ,Mr Lai Weiping, Director, Hongshi Shivam Cement said ” we are delighted on the financial closure of the project, wiht makes Hongshi shivam Cement the largest cement factory in Nepal.”
”NMB Bank believes in supporting projects that contribute to the long sustainable growth in the country. Projects like this supports growth in infrastructre, encourage injectiong FDI in the ecomony and helps generate emloyment.” Remarked Mr Sunil Kc, chief Executive Officer, NMB Bank.