Abdulsamad Rabiu joins Aliko Dangote in debt market over cement business

The founder of BUA Group, Abdulsamad Rabiu, has joined his rival, Aliko Dangote, in the debt market, as both billionaires are in need of capital to finance their projects.

Rabiu approached foreign creditors, such as International Finance Corporation (IFC), to borrow an undisclosed amount to fund the expansion of its BUA Cement business, which is in the same market with Dangote Cement.

In a statement obtained from the Nigerian Exchange Limited (NGX), BUA wrote to its shareholders and the investing public that the company “has gone into discussion with the International Finance Corporation (IFC), serving as lead arranger in conjunction with a number of other lenders in a syndication pool, to obtain a loan for the expansion of BUA Cement’s integrated cement plant in Kalambaina, Sokoto State, Nigeria which shall include increasing its capacity from 2.0 million tons per annum (MTPA) to 8.0 MTPA and the development of other ancillary utilities (the Expansion Project).”

Read also:Abdulsamad Rabiu drops to sixth in Africa’s rich list after losing N12.40bn, Dangote retains top position

This comes after Dangote also approached the bond market to raise N187.6 billion from domestic pension funds, asset managers, insurance companies and high net-worth investors.

Dangote borrowed the money to finance its Dangote Petroleum Refinery Project and its Petrochemical Complex, two months after Fitch Ratings reported that the Company will be raising funds from the bond market.

The capital raise is meant to help Dangote beat the 2023 calender to commence operation at the refinery, as Fitch stated that any postponement next year will affect its investors’ trust. Dangote has postponed the commencement twice.

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