IFC mulls investment in Vicat-Sagar cement plant

IFC mulls investment in Vicat-Sagar cement plant
Published: 12 November 2009

The International Finance Corporation (IFC), the private financing arm of the World Bank, may invest about INR450 crore in a 5.5Mt Vicat-Sagar Cements project in Chatrasala village, Gulbarga, Karnataka.

IFC is looking at an investment, in the form of a combination of debt and equity or quasi-equity, in the range of $75-90m approx INR 345 - 414 crore. Most likely, the investment will be in the form of debt or structured debt.

The Rs 2,500 crore-plant is jointly developed by Hyderabad based Sagar Cements and France based Vicat Group. Of the total investment, Sagar Cements is likely to have 49 per cent stake while the remaining will be with the Vicat Group.

In Phase I, investment worth Rs 1,650 crore is likely to be invested. Of which, Rs 1,000 crore will be debt and Rs 650 crore equity. Financial closure for Phase I is likely to be achieved soon. The acquisition of 1,600 acre has also been completed. The Phase I is likely to be ready by the first half of 2012.