BUA signs $500m facility with IFC

BUA Cement has signed a $500m loan facility to finance ongoing expansion of its integrated cement plants in Kalambaina, Sokoto State. The International Finance Corporation (IFC) is the lead manager of the loan deal. BUA’s regulatory notice to the Nigerian Exchange Limited (NGX) said the loan was secured through the IFC as lead arranger alongside other development banks like the African Development Bank (AfDB) and Africa Finance Corporation (AFC), among others. A statement by the company Secretary, Satomi Hauwa, said: “This announcement is further to our disclosure dated 25th July 2022, wherein we informed the Nigerian Exchange Limited (the NGX), our esteemed shareholders, and the investing public that BUA Cement Plc (BUA Cement) was considering engaging in certain expansion projects and a debt raise of up to Five Hundred Million US Dollars ($500,000,000.00) from International Finnane Corporation (IFC), in its capacity as lead Arranger in conjunction with other lenders.

”We are pleased to inform the NGX, our esteemed shareholders, and the investing public, in line with our disclosure obligations under Chapter 17 of the Rulebook, that BUA Cement has achieved financial close in connection with the Financing to be provided by a syndicate of lending development finance institutions, led by International Finance Corporation (IFC), with participation from African Development Bank (AfDB), Africa Finance Corporation (AFC), and Deutsche Investitions – und Entwicklungsgesellschaft (DEG). “BUA Cement intends to utilise this facility to finance the ongoing expansion of its integrated cement plants in Kalambaina, Sokoto State, Nigeria. The expansion will increase the plant’s capacity to 8.0 MTPA and as well as facilitate the development of other ancillary utilities”. BUA Cement Plc reported a pre-tax profit of N120.1 billion in its 2022 full-year financial statements.

The pre-tax profit was a 16.79 percent increase over the N102.87 billion lt company reported in 2021.The growth in pre-tax profits was due to the increase in sales of bagged cement products, in spite of the inflationary pressure and depreciation of the Naira. Revenue from bagged cement products accounted for 99.46 percent of its total revenue in 2022.