BUA Cement Secures $500 Million Financing for Expanding Cement Plants in Nigeria

BUA Cement Plc, a leading cement manufacturer in Nigeria, has successfully secured a financing package of $500 million to support the expansion of its cement plants.

The financing was obtained from a syndicate of renowned development finance institutions, led by the International Finance Corporation (IFC), and includes participation from the African Development Bank (AfDB), Africa Finance Corporation (AFC), and Deutsche Investitions – und Entwicklungsgesellschaft (DEG).

The expansion projects will focus on BUA Cement’s integrated cement plants located in Kalambaina, Sokoto State, Nigeria. According to the company, the financing will enable BUA Cement to increase the production capacity of these plants to 8.0 million metric tonnes per annum (MTPA) and develop additional auxiliary utilities to support the company’s operations.

This significant financial achievement follows BUA Cement’s disclosure to the Nigerian Exchange Limited (NGX), its esteemed shareholders, and the investing public on 25th July 2022, where the company expressed its intention to pursue expansion projects and raise up to $500 million in debt.

BUA Cement’s expansion projects are expected to have far-reaching effects, including job creation, promotion of local economic development, and infrastructure growth. The increased production capacity will meet the rising demand for cement in Nigeria, supporting various infrastructure projects and bolstering the country’s economic development.

The syndicate of development finance institutions backing the financing highlights the confidence placed in BUA Cement’s potential and its positive impact on the Nigerian economy.