BUA gets $500m IFC investment fund
By Felicia Nwosu
BUA Cement, one of the Nigeria’s foremost Cement companies, has attracted the largest-ever investment fund worth $500 million from the International Finance Corporation to develop energy-efficient cement production capacity and strengthen its equipment and logistics capabilities at the Kalambaina plant in Sokoto State. The company disclosed this financing, during the Africa CEO Forum in Abidjan, Cote d’Ivoire.
The donor partner, IFC, said this initiative will help in providing a financing package alongside African and European partners to BUA Cement Plc.
Reaffirming the enormous impact of the investment, it stated that it will act as a panacea in job creation as well as assist the cement hub to part-finance and develop two new, energy-efficient cement production lines.
The IFC said the $500 million financing package includes $160.5 million loan from its own account, $94.5 million loan managed through co-lending portfolio program known as MCPP, and $245 million in parallel loans from syndication partners.
It also noted that it also includes $100 million from the African Development Bank Group, AFDB, another $100 million, from the Africa Finance Corporation, AFC) , and the German Investment Corporation and $45 million from Deutsche Investment und Entwicklungsgesellschaft mbH, DEG
Makhtar Diop, IFC’s Managing Director, said the financing package by IFC and its partners will also allow BUA to replace some of its diesel trucks with vehicles that are run partly on natural gas over time, producing fewer emissions.
“The plants will run partly on alternative fuels derived from waste and solar power. Each will produce about three million tons of cement annually when complete, serving markets in Nigeria, Niger, and Burkina Faso.
“Investing in northern Nigeria is integral to IFC’s strategy to promote sustainable development in underserved regions. This includes areas with limited opportunities and a need for increased private-sector engagement.”
According to IFC, the new plants will provide local developers with a reliable and affordable source of cement, and bolster the construction of essential infrastructure, fostering economic growth and prosperity for the region.
Expressing his gratitude on the new investment, Abdul Samad Rabiu, chairman and founder of BUA Group, said the company is delighted to partner with IFC and other esteemed institutions in securing the $500 million facility to develop “energy-efficient cement production capacity and strengthen our equipment and logistics capabilities in northern Nigeria”.
“In line with our commitment to sustainability and ESG principles, this investment will create jobs and contribute to economic and infrastructural development within Nigeria and the greater Sahel region,” Rabiu said.
“We are particularly pleased to have successfully gone through the rigorous process with IFC, AfDB, AFC, and DEG, which validates our responsible business practices. By focusing on greener fuels and enhancing our equipment and logistics platform, BUA Cement is building a foundation for sustainable infrastructure growth and a more inclusive society.”
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