BUA Cement, a Nigerian company, has secured $500 million in financing from the International Finance Corporation (IFC) and other lenders to enhance its production capabilities. The IFC and BUA have jointly announced that the funding will support the company in partially financing and developing two new cement production lines at its plant located in Sokoto State, which is situated in northwest Nigeria.
This funding comprises $160.5 million from the IFC, $245 million in syndicated loans from the African Development Bank, the Africa Finance Corporation, and the German Investment Corporation, as well as $94.5 million from institutional investors.
According to the statement issued by the IFC and BUA, the new cement production lines will incorporate the use of alternative fuels derived from waste and solar power. Upon completion, each production line will have an annual output of approximately three million tons of cement, catering to markets in Nigeria, Niger, and Burkina Faso. With BUA’s current production capacity standing at 11 million metric tons, this new investment will contribute an additional 6 million metric tons.
Moreover, the financing package will enable BUA to replace a portion of its diesel trucks with vehicles that operate on natural gas as part of their efforts to reduce emissions, as mentioned in the statement.
