Vicat has announced that the financing of Jambyl Cement’s greenfield cement plant in Kazakhstan has been completed.
The US$160m financing has been arranged by International Finance Corporation (IFC), and it includes a first USD50m tranche financed by IFC and a second US$110m tranche syndicated with Calyon, Société Générale, Crédit Industriel et Commercial and Banca Intesa. Maturities are 10 and seven years respectively.
IFC has also made an equity investment in this project, initiated by Vicat and its local partner Kazkommerts Invest, by taking a 10 per cent stake in Jambyl Cement Company. As a result, Vicat now own 60 per cent of the company, KAzkommerts Invest 30 per cent and IFC 10 per cent.
Guy Sidos, Vicat’s CEO, commented: “We are pleased to have completed, with IFC’s support, the financing of our greenfield cement plant in Kazakhstan in line with the initial schedule and on terms that are favourable in the current environment. Our ability to secure financing and IFC’s purchase of an equity stake in Jambyl Cement reflect both the quality of the project and the strong long-term potential of the Kazakh market.”
Dimitris Tsitsiragos, IFC’s Director for Global Manufacturing & Services, added that “this investment represents the continuation of a successful long-term partnership with Vicat. The project will set higher environmental standards for the country’s cement sector, making use of clean technology and energy efficient processes.”