Standard Chartered Bank has provided a US$350m facility to Obajana Cement Plc, a division of Dangote Group, for its business expansion programme.
The development is coming on the heels of the liquidation of a US$1.27bn loan, secured by Dangote Group, from a consortium of 10 Nigerian banks, five and a half years ahead of repayment schedule.
Obajana Cement is currently the largest cement manufacturer cement in Nigeria.
Part of the US$350m loan facility will be applied towards the expansion and the construction of a power plant for the Ibese Power Plant project, which is a new 5Mt cement plant being built by the company.
Commenting on the transaction, President an Chief Executive Offiver of the Dangote Group, Alhaji Aliko Dangote, said:"We are delighted to have obtained this corporate facility from Standard Chartered Bank. The terms of this facility will provide us with additional capacity to optimise our productivity, enhance our operations and increase our cash flows. The loan will fund our capital expenditure requirements and will further facilitate the achievement of our growth strategy.