Abdul samad Rabiu, Nigerian billionaire and owner of BUA Cement has secured $500 million in financing from the International Finance Corporation (IFC) and other lending institutions to enhance production.
In a joint statement issued on Tuesday, the International Finance Corporation (IFC) and BUA announced that the funding would be utilized to partially finance and facilitate the development of two new, energy-efficient cement production lines at BUA’s plant in Sokoto state, located in northwest Nigeria.
The funding package consists of $160.5 million provided by the IFC, $245 million in syndicated loans sourced from the African Development Bank, Africa Finance Corporation, and the German Investment Corporation, along with an additional $94.5 million contributed by institutional investors.
The IFC and BUA stated that “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.”
What you should know about BUA Cement
Presently, BUA Cement, the second-largest cement producer in Nigeria, operates with a capacity of 11 million tonnes. The recent investment will significantly enhance this capacity by an additional 6 million tonnes.
Furthermore, as stated in the announcement, the new financial package will enable BUA to replace a portion of its diesel trucks with vehicles that utilize natural gas as a partial fuel source. This transition aims to reduce pollution and contribute to environmental sustainability efforts.
According to the Bloomberg Billionaires Index, Rabiu currently possesses a net worth of $8.24 billion.
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