Arab banks lend Lafarge $340 mln for Syria factory

Lebanese group Bank Audi (AUDI.BY) has extended a $340 million syndicated loan for seven years to a subsidiary of Lafarge (LAFP.PA) to finance a cement factory in Syria which has a shortage of the product.

The bank said the loan to Lafarge Cement Syria by a group of mostly Arab banks would partly cover the cost of the 2.75 million tonne a year factory.

Its statement did not give other financial details. Audi arranged an 18-month $380 million bridge loan for the project last year.

The Syrian government, which has been controlled by the ruling Baath Party since 1963, has partially lifted restrictions on private capital into banking, industry and real estate in the last several years after decades of heavy nationalisation and bans on private enterprise.

Syria produces 6 million tonnes of cement a year, 2-3 million tonnes short of domestic demand. All cement factories are owned by the state, except two privately owned factories under construction, including Lafarge's plant.

From China Cement (2009-11-17)