BUA Cement, a cement producer headquartered in Nigeria has raised $500 million in a financing deal led by the Worldwide Finance Company (IFC) and a gaggle of African and European companions.
The $500 million financing deal contains $160.5 million from IFC, $94.5 million mortgage by means of the Managed Co-lending Portfolio Program (MCPP), and $245 million in parallel loans from syndication companions; the African Growth Financial institution (AfDB) – $100 million, the Africa Finance Company (AFC) – $100 million, and the German Funding Company, Deutsche Investitions- und Entwicklungsgesellschaft (DEG) – $45 million. That is IFC’s largest-ever funding in Northern Nigeria.
“Following an preliminary $200 million funding in BUA Group in 2021, we’re proud to play one other key position on this landmark manufacturing mission set to remodel the development sector in northern Nigeria and your complete nation. By investing on this mission, we’re sustainably constructing Nigeria’s native manufacturing capability, empowering native communities and creating employment alternatives. AFC is dedicated to working with our companions to speed up growth affect by means of infrastructure options that help worth addition, industrialization, and job creation all through Africa,” mentioned Samaila Zubairu, CEO & President of Africa Finance Company (AFC).
The producer will use the funds to develop two new, energy-efficient cement manufacturing strains in Sokoto state, Northern Nigeria that can create 12,000 direct and oblique jobs.
The crops will run partly on different fuels derived from waste and solar energy. Every will produce about three million tonnes of cement yearly when full, serving markets in Nigeria, Nigeria and Burkina Faso.
The deal may even permit BUA to exchange a few of its diesel vehicles with autos which can be run partly on pure fuel, over time.
BUA Cement is without doubt one of the subsidiaries of BUA Group. It’s the results of a merger between Cement Firm of Northern Nigeria (CCNN) Plc and Obu Cement Firm Plc (previously Obu Cement Firm Restricted). It’s the second largest cement firm in Nigeria after Dangote cement.
Makhtar Diop, IFC’s Managing Director, said that it was happy to affix with its companions to help BUA with an funding that may increase industrialization, create jobs and ship financial progress in northern Nigeria, a area with important financial potential.