The International Finance Corporation (IFC) and other lenders have provided $500 million in finance to Nigeria’s BUA Cement (BUACEMENT.LG) to increase output. In a joint statement, the IFC and BUA stated that the money will aid the firm in developing two new, energy-efficient cement manufacturing lines at its factory in northwest Nigeria’s Sokoto state.
The finance consists of $94.5 million from institutional investors, $245 million in syndicated loans from the German Investment Corporation, African Development Bank, and Africa Finance Corporation, and $160.5 million from IFC.
The plants will use solar energy and other fuels made from garbage to run in part. After completion, each would generate around three million tons of cement yearly, servicing markets in Nigeria, Niger, and Burkina Faso,” IFC and BUA said.
BUA has a production capacity of 11 million tonnes and the new investment will add another 6 million tonnes. The new financing package will also allow BUA to replace some of its diesel trucks with vehicles that run partly on natural gas in a push to cut emissions, the statement said.