Cordiant lends $27m to Vietnamese port

The Canadian fund manager is making the loan on behalf of the IFC's Crisis Facility Debt Pool, which Cordiant has been managing since 2009 after it won a competitive selection process for the management rights.

Coridant Capital will provide a $27 million loan to fund an expansion at a port in Vietnam, the Canadian fund manager said in a statement.

The Cai Lan International Container Terminal will use the money to fund the construction of a deep water container handling facilities at the Cai Lan Port near Hanoi, the Vietnamese Capital.

The loan is part of a broader $155 million, 11-year financing for the terminal. The International Finance Corporation, the private investment arm of the World Bank, is providing the remainder of the financing along with development finance institutions FMO and Proparco.

The new port facilities are due to be completed by the end of the year.

Cordiant is making the loan on behalf of the IFC's Crisis Facility Debt Pool, which was set up by the IFC in 2009 to keep infrastructure projects moving in the emerging markets in the aftermath of the financial crisis.

Cordiant was awarded the management of the debt pool in late 2009. To date, the debt pool has raised €500 million from Germany's state-owned bank, KfW. Another €100 million commitment is expected shortly, Cordiant said in the statement.

“It will likely grow,” Suzanne Gaboury, a managing director at Cordiant, said of the debt pool. She added that Cordiant has so far committed €240 million of the initial €500 million dedicated to the pool. The money was dedicated across seven deals, Gaboury said, with the Vietnamese deal being the sixth.

Montreal-based Cordiant invests private equity and debt in emerging markets. The firm was founded by former BMO Nesbitt Burns executive David Creighton and former investment advisor AMI veteran Carl Otto in 1999. The firm has raised $2.4 billion for emerging markets investments since its founding, according to its website.