BUA Cement, controlled by Nigerian billionaire Abdulsamad Rabiu, has received $500-million in financing from the International Finance Corporation (IFC) and other lenders to boost production.
The IFC and BUA said in a joint statement issued on Tuesday that the funding would help the company part-finance and develop two new, energy-efficient cement production lines at its plant in Sokoto state, in northwest Nigeria.
The funding comprises $160.5 million from IFC, $245 million in syndicated loans from African Development Bank, Africa Finance Corporation, and the German Investment Corporation, as well as $94.5 million from institutional investors.
“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,” the IFC and BUA stated.
BUA Cement, Nigeria’s second-largest cement producer, presently has a capacity of 11 million tonnes, and the new investment will increase that capacity by 6 million tonnes. In addition, according to the statement, the new finance package will allow BUA to replace some of its diesel trucks with vehicles that run partially on natural gas to reduce pollution.
Rabiu has a present net worth of $8.24 billion according to the Bloomberg Billionaires Index.
