BUA Cement, a cement producer headquartered in Nigeria has raised $500 million in a financing deal led by the International Finance Corporation (IFC) and a group of African and European partners.
The $500 million financing deal includes $160.5 million from IFC, $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. This is IFC’s largest-ever investment in Northern Nigeria.
“Following an initial $200 million investment in BUA Group in 2021, we are proud to play another key role in this landmark manufacturing project set to transform the construction sector in northern Nigeria and the entire country. By investing in this project, we are sustainably building Nigeria’s local manufacturing capacity, empowering local communities and creating employment opportunities. AFC is committed to working with our partners to accelerate development impact through infrastructure solutions that support value addition, industrialization, and job creation throughout Africa,” said Samaila Zubairu, CEO & President of Africa Finance Corporation (AFC).
The manufacturer will use the funds to develop two new, energy-efficient cement production lines in Sokoto state, Northern Nigeria that will create 12,000 direct and indirect jobs.
The plants will run partly on alternative fuels derived from waste and solar power. Each will produce about three million tonnes of cement annually when complete, serving markets in Nigeria, Nigeria and Burkina Faso.
The deal will also allow BUA to replace some of its diesel trucks with vehicles that are run partly on natural gas, over time.
BUA Cement is one of the subsidiaries of BUA Group. It is the result of a merger between Cement Company of Northern Nigeria (CCNN) Plc and Obu Cement Company Plc (formerly Obu Cement Company Limited). It is the second largest cement company in Nigeria after Dangote cement.
Makhtar Diop, IFC’s Managing Director, stated that it was pleased to join with its partners to support BUA with an investment that would boost industrialization, create jobs and deliver economic growth in northern Nigeria, a region with significant economic potential.
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