AfDB mobilises US$60m loan for DRC cement project

AfDB mobilises US$60m loan for DRC cement project
05 December 2014

The Nyumba Ya Akiba Cement project in the DR of Congo marked a significant milestone last week with the loan signing of US$135m.

The 1.18Mta greenfield plant is a 50/50 joint venture between leading Pakistan cement producer Lucky Cement Ltd and Groupe Rawji, one of the DRC’s largest conglomerates.

The project has attracted financial support from the African Development Bank (AfDB), Eksport Kredit Fonden (EKF, as guarantor to AfDB), Emerging Africa Infrastructure Fund (EAIF), Habib Bank Limited (HBL, as lead arranger) and the International Finance Corporation (IFC).

The signing of the financing agreements signifies the completion of the project’s financing subject to completing the remaining conditions precedent

Total project costs of US$270m will be funded by the US$135m worth of loans. The AfDB will contribute two tranches of up to US$30m each, with one tranche being fully guaranteed by the Danish Export Credit Agency (EKF).

Located in the Songololo, Bas Congo province of the DRC, the plant's limestone and clay quarries are located on the plant site, 250km from Kinshasa. The Matadi port, located 100km from the plant, will allow access for the import of raw materials and the export of product to the regional markets.

Published under Cement News