BUA Cement, owned largely by the billionaire, Rabiu Abdulsamad, has obtained a $500 million loan from international creditors, the company disclosed in a corporate filing obtained on Tuesday.
The loan was facilitated by International Finance Corporation (IFC), with participation from African Development Bank (AfDB), Africa Finance Corporation (AFC), and Deutsche Investitions – undEntwicklungsgesellschaft (DEG).
In the corporate statement dated June 5, 2023, sent to BUA Cement’s shareholders and the capital market authority, Nigerian Exchange Limited (NGX), the $500 million was obtained to expand the firm’s cement plants in Sokoto.
This expansion will enable BUA Cement to remain competitive against its market rivals, Dangote Cement, owned by Aliko Dangote, and Lafarge Cement.
The loan will be disbursed to finance the ongoing expansion of its integrated cement plants in Kalambaina in Sokoto State to 8.0 MTPA capacity and as well as facilitate the development of other ancillary utilities.
The document reads: “This announcement is further to our disclosure dated 25th July 2022, wherein we informed the Nigerian Exchange Limited (the NGX), our esteemed shareholders and the investing public that BUA Cement Plc (BUA Cement) was considering engaging in certain expansion projects and a debt raise of up to Five Hundred Million US Dollars ($500,000,000.00) from International Finnane Corporation (IFC) in its capacity as lead Arranger in conjunction with other lenders.
“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.”
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