BUA Cement Plc said it has secured $500 million in financing from the International Finance Corporation (IFC) and other lenders to boost production and expand its operations, the firm said in a regulatory filing with the local bourse.
The IFC and BUA said in a joint statement that the funding would help the company part-finance and develop two new, energy-efficient cement production lines at its plant in Sokoto State, in northwest Nigeria.
The funding includes $160.5 million from the IFC, $245 million in syndicated loans from the African Development Bank (AfDB), the Africa Finance Corporation (AFC), and the German Investment Corporation, as well as $94.5 million from institutional investors.
“The plants will run partly on alternative fuels derived from waste and solar power. Each will produce about three million tons of cement annually when complete, serving markets in Nigeria, Niger, and Burkina Faso,” IFC and BUA said.
In a regulatory filing with the Nigerian Exchange Limited (NGX), BUA stated that it intends to utilize this facility to finance the ongoing expansion of its integrated cement plants in Kalambaina, Sokoto.
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“We are pleased to inform the NGX, our esteemed shareholders and the investing public, in line with our disclosure obligations pursuant to Chapter 17 of the Rulebook, that BUA Cement has achieved financial close in connection with the Financing to be provided by a syndicate of lending development finance institutions, led by International Finance Corporation (IFC), with participation from African Development Bank (AfDB), Africa Finance Corporation (AFC), and Deutsche Investitions – undEntwicklungsgesellschaft (DEG).
“BUA Cement intends to utilize this facility to finance the ongoing expansion of its integrated cement plants in Kalambaina, Sokoto State, Nigeria.
“The expansion will increase the plant’s capacity to 8.0 MTPA and as well as facilitate the development of other ancillary utilities.
BUA has a production capacity of 11 million metric tons, and the new investment will add another 6 million metric tons.
The new financing package will also allow BUA to replace some of its diesel trucks with vehicles that run partly on natural gas in a push to cut emissions, the statement said.
(omayowa@globalfinancialdigest.com; Newsroom: +234 8033 964 138)
