The Vicat Group has announced the finalisation of financing for the Vicat Sagar greenfield cement plant in India, a project conducted in partnership with Sagar Cements Limited, and in which the Vicat group holds a majority shareholding.
This cement plant will have a cement capacity of 5.5Mta, based on two clinker production lines, each with a capacity of 6000tpd. The first of these, which will have an annual capacity of 2.75Mt of cement, is due to enter service in 2012.
This financing, which was arranged by International Finance Corporation (IFC), a subsidiary of the World Bank, amounts to €195m. It includes an initial tranche of €140m arranged by IFC with the support of three development financing institutions, namely DEG, FMO and Proparco, and a second €55 million tranche syndicated by IFC with Crédit Agricole CIB, Crédit Industriel et Commercial, Natixis and Société Générale. The maturities of the two tranches are 11 and eight years, respectively.
Guy Sidos, CEO of the Vicat group commented: “We are pleased to have completed the financing, with the support of all the partner financial institutions, for our Vicat Sagar greenfield cement plant in India on terms that the Vicat group considers to be favourable. The financing raised demonstrates the quality of our project and the Indian market’s very strong potential.”
Dimitris Tsitsiragos, IFC’s Director of Global Manufacturing & Services, stated: “IFC is pleased to support the construction of the Vicat Sagar cement plant. The project will generate direct and indirect employment, and contribute to the adoption of best industry practices in terms of energy efficiency and control of emissions.”