Opening doors to international credit markets for customers
With our years of experience and state-of-the-art technology that meets international environmental regulations, FLSmidth facilitates customers’ access to credit markets around the world in order to get projects off the ground.
So when Jordan’s Modern Cement and Mining Company, Ltd. wanted to build a greenfield cement plant in Siwaqa, FLSmidth was onboard from the start, facilitating the financing of the plant. Large construction projects require massive amounts of capital. And in today’s economic climate, many banks are reluctant to insure loans of that size. So when the credit crisis was at its highest, Jordan’s Modern Cement and Mining Company asked FLSmidth to assist them in securing financing for the construction of the planned greenfield cement plant in Siwaqa.
“We can help customers to access international credit markets because we have worldwide experience cooperating with cement plants, international banks and Denmark’s Export Credit Agency (EKF). With our support customers can realise their projects and get good financing,” says Head of Project and Export Finance, Tine Bremholm Kokfelt. For Modern Cement and Mining Company’s Jordan plant, Tine worked with EKF to help the customer benefit from a DKK 20 billion funding package recently made available by the Danish government.
“EKF wanted to share the risk with other banks, so we formed a club of two international banks headed by HSBC, and the customer made a club with their local banks for the remaining finance. Modern Cement and Mining Company now has two loans – one in local currency and another in a foreign currency. The advantage is that the customer overall gets better terms than otherwise possible in the local market, still keeping the local bank involved,” says Tine. “Both loans will serve as security for the payments to be made to FLSmidth upon shipment. We have been in a very close dialogue with Modern Cement and Mining Company and the banks regarding the payment structures,” says Head of Trade Finance, Annette Matzen.
Securing finance to get the job started
Extensive financing agreements don’t happen overnight. The EKF needs to interview the plant-owner and look at the local market, environmental standards and the project’s profitability. In the case of the Jordan plant, it has been very important that Modern Cement and Mining Company has been able to make considerable own payments to FLSmidth. “This has enabled FLSmidth to proceed with the work on the project while FLSmidth and Modern Cement and Mining Company jointly have been coordinating the banks and EKF, and at the same time manage to keep the overall timetable for the project“ says Tine.
When it comes on stream end of 2011, the 3,500 tpd plant will supply high-quality cement for the local and regional market. FLSmidth will design the new production line and supply all the equipment, including crushers, an ATOX raw mill, a pyro-processing line complete with SF Cross-Bar cooler as well as a UMS cement grinding mill and a packing plant. The new, state-of-the-art production line will produce three types of cement: Portland Cement, Pozzolanic Cement and Sulphate Resisting Cement – and it should significantly boost Jordan’s construction sector.
EKF – Denmark’s Export Credit Agency
Ensuring competitive financial conditions for Danish industry in international markets, EKF insures businesses against extraordinary risks not covered by the private credit insurance market.
EKF makes it possible for companies to finance transactions in expanding markets, and plays a key role in helping Danish companies develop new markets. In 2009, the Danish Government introduced a DKK 20 billion funding programme for banks supporting financing of Danish export. It has been possible to utilise this programme for the greenfield cement project with Modern Cement and Mining Co.
The environmental advantage
We are also able to secure financing because of our state-of-the-art technology which is leading when it comes to meeting international environmental regulations – and the standards laid out in the World Bank’s Environmental, Health, and Safety Guidelines for Cement and Lime Manufacturing.
Our environmental advantage made a huge difference recently in Vietnam for Quang Ninh Construction Company and Cement Joint Stock Company’s cement plant (QNCC) northeast of Hanoi. Because of the decision by QNCC to use FLSmidth’s energy efficient OK cement mill as well as air filters, the project was able to obtain financing through the Nordic Investment Bank (NIB), the international financial institution of the Nordic and Baltic countries. NIB only finances projects that have a positive impact on the environment and exceed international clean air standards, so QNCC relied on FLSmidth’s expertise in the area to make the project happen.
Most plants in the region use traditional ball mills, but the OK mill is a vertical cement grinding mill with bag air filters. This energy-efficient mill is now helping reduce the plant’s power consumption by 50 percent. Tine says, “if it had not been for the financing programme from NIB supporting environmental investments, QNCC would have bought a traditional mill that would have doubled their power consumption and increased emissions.” So overall a win-win situation for all parties.
Opening up markets – and possibilities
Of course, this type of assistance isn’t necessary for many large, multinational manufacturers. But it’s great for small or mid-range companies and newcomers”, say Tine and Annette. “We’re an established partner with years of experience in the industry, so we’re well-connected to international commercial banks and other financial institutions. We work together with our customers to secure financing at competitive rates and bring the package together.”
Many projects simply wouldn’t get off the ground without this kind of help. Tine adds, “Many customers need export credit financing – and this requires supplier support. We can open the door for them due to our excellent relationship with EKF and international financial institutions.” And because strict standards must be met to qualify for international financing, the plant also gets a marketable quality stamp.
Contact:
Tine Bremholm Kokfelt, Head of Project and Export Finance
Opening International Credit Markets
Opening doors to international credit markets for customers
With our years of experience and state-of-the-art technology that meets international environmental regulations, FLSmidth facilitates customers’ access to credit markets around the world in order to get projects off the ground.
So when Jordan’s Modern Cement and Mining Company, Ltd. wanted to build a greenfield cement plant in Siwaqa, FLSmidth was onboard from the start, facilitating the financing of the plant. Large construction projects require massive amounts of capital. And in today’s economic climate, many banks are reluctant to insure loans of that size. So when the credit crisis was at its highest, Jordan’s Modern Cement and Mining Company asked FLSmidth to assist them in securing financing for the construction of the planned greenfield cement plant in Siwaqa.
“We can help customers to access international credit markets because we have worldwide experience cooperating with cement plants, international banks and Denmark’s Export Credit Agency (EKF). With our support customers can realise their projects and get good financing,” says Head of Project and Export Finance, Tine Bremholm Kokfelt. For Modern Cement and Mining Company’s Jordan plant, Tine worked with EKF to help the customer benefit from a DKK 20 billion funding package recently made available by the Danish government.
“EKF wanted to share the risk with other banks, so we formed a club of two international banks headed by HSBC, and the customer made a club with their local banks for the remaining finance. Modern Cement and Mining Company now has two loans – one in local currency and another in a foreign currency. The advantage is that the customer overall gets better terms than otherwise possible in the local market, still keeping the local bank involved,” says Tine. “Both loans will serve as security for the payments to be made to FLSmidth upon shipment. We have been in a very close dialogue with Modern Cement and Mining Company and the banks regarding the payment structures,” says Head of Trade Finance, Annette Matzen.
Securing finance to get the job started
Extensive financing agreements don’t happen overnight. The EKF needs to interview the plant-owner and look at the local market, environmental standards and the project’s profitability. In the case of the Jordan plant, it has been very important that Modern Cement and Mining Company has been able to make considerable own payments to FLSmidth. “This has enabled FLSmidth to proceed with the work on the project while FLSmidth and Modern Cement and Mining Company jointly have been coordinating the banks and EKF, and at the same time manage to keep the overall timetable for the project“ says Tine.
When it comes on stream end of 2011, the 3,500 tpd plant will supply high-quality cement for the local and regional market. FLSmidth will design the new production line and supply all the equipment, including crushers, an ATOX raw mill, a pyro-processing line complete with SF Cross-Bar cooler as well as a UMS cement grinding mill and a packing plant. The new, state-of-the-art production line will produce three types of cement: Portland Cement, Pozzolanic Cement and Sulphate Resisting Cement – and it should significantly boost Jordan’s construction sector.
EKF – Denmark’s Export Credit Agency
Ensuring competitive financial conditions for Danish industry in international markets, EKF insures businesses against extraordinary risks not covered by the private credit insurance market.
EKF makes it possible for companies to finance transactions in expanding markets, and plays a key role in helping Danish companies develop new markets. In 2009, the Danish Government introduced a DKK 20 billion funding programme for banks supporting financing of Danish export. It has been possible to utilise this programme for the greenfield cement project with Modern Cement and Mining Co.
The environmental advantage
We are also able to secure financing because of our state-of-the-art technology which is leading when it comes to meeting international environmental regulations – and the standards laid out in the World Bank’s Environmental, Health, and Safety Guidelines for Cement and Lime Manufacturing.
Our environmental advantage made a huge difference recently in Vietnam for Quang Ninh Construction Company and Cement Joint Stock Company’s cement plant (QNCC) northeast of Hanoi. Because of the decision by QNCC to use FLSmidth’s energy efficient OK cement mill as well as air filters, the project was able to obtain financing through the Nordic Investment Bank (NIB), the international financial institution of the Nordic and Baltic countries. NIB only finances projects that have a positive impact on the environment and exceed international clean air standards, so QNCC relied on FLSmidth’s expertise in the area to make the project happen.
Most plants in the region use traditional ball mills, but the OK mill is a vertical cement grinding mill with bag air filters. This energy-efficient mill is now helping reduce the plant’s power consumption by 50 percent. Tine says, “if it had not been for the financing programme from NIB supporting environmental investments, QNCC would have bought a traditional mill that would have doubled their power consumption and increased emissions.” So overall a win-win situation for all parties.
Opening up markets – and possibilities
Of course, this type of assistance isn’t necessary for many large, multinational manufacturers. But it’s great for small or mid-range companies and newcomers”, say Tine and Annette. “We’re an established partner with years of experience in the industry, so we’re well-connected to international commercial banks and other financial institutions. We work together with our customers to secure financing at competitive rates and bring the package together.”
Many projects simply wouldn’t get off the ground without this kind of help. Tine adds, “Many customers need export credit financing – and this requires supplier support. We can open the door for them due to our excellent relationship with EKF and international financial institutions.” And because strict standards must be met to qualify for international financing, the plant also gets a marketable quality stamp.
Contact:
Tine Bremholm Kokfelt, Head of Project and Export Finance
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Attachments
fls-financing_1 (GIF)
fls_siwaqa_cement_plant_1 (GIF)
fls_siwaqa_cement_plant_2 (GIF)
fls_siwaqa_cement_plant_3 (GIF)
fls_siwaqa_cement_plant_4 (GIF)
fls_logo (GIF)
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