Representatives from the Cheng Yang company and Bank of China at the signing ceremony. — VNS Photo Thu Ngan

HCM CITY (Biz Hub) – Chinese-owned Cheng Yang Paper Mill Company Ltd has signed an agreement for a syndicated loan of US$168 million to expand its operations in Việt Nam.

Bank of China will be the lead bank and mobilise $81 million from its branches in HCM City, Grand Cayman, Dong Guan and Macau.

There will be four other banks in the syndicate: Bank of Communications Company Ltd; Mega International Commercial Bank Company Ltd, Central Branch; Cathay United Bank Company Ltd and Bangkok Bank Public Company Ltd.

The Binh Dương-based company, which came to Việt Nam in 2003, has an annual capacity of 105,000 tonnes of industrial, kraft and duplex paper. The loan would be used to increase the capacity by 442,000 tonnes a year, it said.

Cheng Yang belongs to the Nine Dragons Group, which was established in 1995, and is the largest recycled kraft-liner board paper manufacturer in Asia. — VNS