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BUA CEMENT SECURES $500 MILLION FINANCING PACKAGE TO BOOST PRODUCTION, CREATE JOBS

 BUA Cement Plc, Nigeria's second-largest cement producer, has secured a $500 million financing package from the International Finance Corporation (IFC), the African Development Bank (AfDB), the Africa Finance Corporation (AFC), and DEG, the German development finance institution.

The facility will be used to part-finance the construction of two new, energy-efficient cement production lines at BUA's Cement Company of Northern Nigeria (CCNN) plant in Sokoto State. The new lines are expected to increase CCNN's production capacity by 3 million tonnes per annum, bringing the company's total capacity to 12 million tonnes per annum.

The investment is expected to create up to 12,000 direct and indirect jobs during the construction phase and 3,000 permanent jobs once the new lines are operational. It is also expected to boost Nigeria's cement production capacity and help to reduce the country's dependence on imports.

Speaking on the development, Abdul Samad Rabiu, Chairman of BUA Group, said: "We are delighted to partner with IFC, AfDB, AFC, and DEG to secure this $500 million facility. This investment will help us to expand our production capacity, create jobs, and contribute to the economic development of Nigeria."

Marta Andreasen, IFC's Managing Director for Africa, said: "This investment is a vote of confidence in Nigeria's economic prospects and BUA's commitment to sustainable development. It will help to create jobs, boost economic growth, and reduce Nigeria's reliance on imports."

The financing package is structured as a combination of senior debt and mezzanine finance. The senior debt is provided by IFC, AfDB, and AFC, while DEG is providing the mezzanine finance. The facility has a tenor of 10 years and a grace period of 3 years.

The construction of the new lines is expected to commence in the second quarter of 2023 and be completed in the first quarter of 2025.


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