Thailand: BAY, BTMU approve $1.1b financing for Siam City Cement’s oversea acquisitions

Visual from SCCC website.

Bank of Ayudhya (BAY) and Bank of Tokyo-Mitsubishi UFJ (BTMU) jointly provided the $1.1-billion financing to Thailand’s second largest cement producer Siam City Cement Pcl (SCCC) for its acquisitions in Sri Lanka and Vietnam.

The financing proceeds will fund the acquisitions of a 98.95-per-cent stake in Holcim (Lanka) Limited and a 65-per-cent stake in Holcim (Vietnam) Co Ltd from LafargeHolcim.

These transactions are the major milestones for SCCC, which is hoping to become regional player by diversifying businesses from the domestic market, said the company.

“The Vietnam deal is the largest acquisition transaction ever done by SCCC, and is also the largest cement acquisition outside Thailand by a Thai corporate,” Siva Mahasandana, director and CEO of Siam City Cement, said.

BAY and BTMU also jointly provided the dual-currency $400 million one-year bridge loan facility for its acquisition in Sri Lanka in August 2016.

BTMU, with support from Krungsri, acted as a lead arranger for the 18.9-billion-baht bridge loan facility for SCCC in its acquisition of Holcim (Vietnam). The loan was oversubscribed and syndicated to six local and international banks.

BAY also acted as a financial advisor and credit rating advisor to SCCC.

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