Of this credit limit, there will be VND737 billion worth of medium to long-term credits for the enterprise to invest in two cold-rolled steel production lines with designed capacity of 200,000 tons a year each and a steel sheet production line with the annual capacity of 400,000 sheets. The enterprise will also use this fund to supplement capital for other business activities.
Short-term loans will bear an interest rate of 8% per annum while that of long-term credits will be 11% per annum.
Le Phuoc Vu, chairman of Hoa Sen Group, said the enterprise has exported its products to many countries in Southeast Asia.
In the first eight months of its fiscal year 2012-2013, the group obtained VND513.3 billion in after-tax profit with over 383,000 tons of products sold, raising its market share in Vietnam to 42%. Cooperation with VietinBank will help the enterprise reach revenue of US$1 billion and expand its business in the future, Vu said.