REAL ESTATE

BUA Cement To Raise $500m Facility From IFC, Others

 

BUA Cement Plc has announced on the Nigerian Exchange Limited (NGX) that it had secured a $500 million facility from the International Finance Corporation (IFC) and partners to develop energy-efficient cement production capacity and strengthen its equipment and logistics capabilities in northern Nigeria.

The company, in a statement, said this investment, marked the largest-ever investment by IFC, will create up to 12,000 direct and indirect jobs and contribute to economic and infrastructural development within Nigeria and the greater Sahel region.

According to the statement, IFC’s $500 million financing package includes a $160.5 million loan from IFC’s own account, a $94.5 million loan through the Managed Co-Lending Portfolio Program (MCPP), and $245 million in parallel loans from syndication partners; the African Development Bank (AfDB) $100 million, the Africa Finance Corporation (AFC) $100 million, and the German Investment Corporation, Deutsche Investitions- und Entwicklungsgesellschaft (DEG) $45 million.

It said the financing, announced during the Africa CEO Forum in Abidjan, Côte d’Ivoire, will allow BUA, Nigeria’s second-largest cement producer, to develop new production lines in Sokoto State.

The company said 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.

“Investing in northern Nigeria is integral to IFC’s strategy to promote sustainable development in underserved regions.

“This includes areas with limited opportunities and a need for increased private sector engagement. The new plants will provide local developers with a reliable and affordable source of cement, and bolster the construction of essential infrastructure, fostering economic growth and prosperity for the region,” it said.

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