Also note that the loan would fund the development of other ancillary public services, BUA Cement said.
Business Insider Africa has learned that the IFC, which specializes in advisory services and loan mobilization, will arrange the deal alongside other lenders that have not yet been disclosed.
“Under our disclosure obligations under Chapter 17 of the Rulebook, BUA CEMENT PLC (BUA CEMENT or the COMPANY) hereby gives notice to Nigerian Exchange Limited (NGX), its valued shareholders and the investing public that the Company has entered into discussions with the International Finance Corporation (IFC), acting as lead arranger in conjunction with a number of other lenders in a syndication pool, to secure a loan for the expansion of BUA Cement’s integrated cement plant at Kalambaina, Sokoto State, Nigeria, which will include increasing its capacity from 2.0 million tonnes per annum (MTPA) to 8.0 MTPA and developing other ancillary utilities (the expansion)” says part of the BUA Cement statement.
Note that BUA Cement’s total borrowings (excluding issued debt instruments) currently stands at $198.058 million (82.3 billion naira), according to information from its H1 2022 financial report.
The company is one of the largest cement manufacturers in Africa’s largest economy (in terms of GDP) and most populous country. It is also majority owned by Abdulsamad Rabiu, one of Africa’s richest men with a net worth of $6.3 billion, according to the Bloomberg Billionaire Index. Business Insider Africa checks show that Mr. Rabiu owns around 56.2% of the stock market-listed Nigerian company.
BUA Cement reported a profit after tax of $148 million (61.3 billion naira) according to its unaudited financial statements for the six months ended June 30, 2022.