EIB provides US$150m for greenfield plant

The European Investment Bank, the European Union’s long-term lending institution, has signed loan facilities totalling US$150m (EUR 123m) with Obajana Cement PLC, a subsidiary of Dangote Industries Limited of Nigeria. US$110m is guaranteed – for commercial risks only - by Eksport Kredit Fondsen (EKF) of Denmark for US$70m and by other international banks, including Fortis Bank, for the remaining US$40m. The objective of the facilities is to finance the construction and operation of a new cement plant on a greenfield site with a capacity of 4.4Mta.

These facilities are part of a US$479m financing package to Obajana Cement PLC with a consortium of major international and Nigerian financial institutions, including the International Finance Corporation (IFC), Africa Merchant Bank/Banque Belgolaise and Netherlands’ Overseas Development Finance Company (FMO) as well as First Bank of Nigeria PLC in its capacity as arranger of the local banks’ tranche.