BIDV, construction bank finance home, road projects

July 24, 2013 | 14:22

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The Bank for Investment and Development Bank of Vietnam (BIDV) and Vietnam Construction Bank have signed five deals with partners to fund highway upgrade and budget home projects in the central region.

The agreements, inked in the central province of Binh Dinh July 19, started up a scheme involving four sides – banks, investors, contractors and building material makers.

Of the five deals, four are for upgrading and refurbishing national highways 1 and 14, as well as building Hoang Quan Plaza in the central region.

The newly-launched scheme enables investors, contractors and building material companies to get access to bank loans. The Vietnam Construction Bank acts as the sellers’ bank, with the sellers being the building material makers, while BIDV will issue its guarantees for the buyers, including home buyers.

Previously, BIDV and the Ministry of Transport signed a cooperation agreement to upgrade the National Highway 1 with the total loan of VND30 trillion ($1.4 billion plus), with VND20 trillion used to finance build-operate-transfer (BOT) projects.

The Vietnam Construction Bank made its debut late this May following a State Bank of Vietnam announcement that the southern province of Long An province-based TrustBank turned into the construction bank. Its extraordinary shareholders’ meeting late June agreed that its currently chartered capital of VND3 trillion ($143 million) would increase to VND7.5 trillion ($359 million).

By By Tuong Thuy

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