Africa Finance Company (AFC) (www.AfricaFC.org), the continent’s main infrastructure options supplier, has facilitated a landmark US$200 million company finance facility for the BUA Group, a outstanding Nigerian conglomerate spanning meals, infrastructure, mining and manufacturing sectors. The power, offered to BUA Industries Restricted by the African Export-Import Financial institution (Afreximbank), marks the second profitable monetary advisory mandate that AFC has closed for the BUA Group (BUA), reaffirming its dedication to driving impactful transactions that advance sustainable improvement and financial development throughout Africa.
The financing, permitted by Afreximbank in two tranches, helps BUA’s medium-term targets by unlocking capital to pursue rising market alternatives. The primary tranche of US$150 million has been disbursed, enabling BUA to speed up development initiatives throughout its numerous portfolio, which incorporates sugar and cement manufacturing, flour milling, oil processing, actual property improvement, oil and gasoline, delivery and ports.
AFC’s partnership with BUA has been integral to a number of key tasks, together with its advisory function within the financing of BUA’s 20,000 hectares built-in sugarcane plantation and sugar manufacturing facility in Kwara State in 2021. This undertaking helps to considerably scale back Nigeria’s dependency on imported sugar uncooked supplies whereas fostering job creation and stimulating financial exercise.
Group Government Director at BUA Industries Restricted, Kabiru Rabiu mentioned: “We’re happy to conclude the profitable increase of the mortgage facility with Afreximbank. This partnership underscores the boldness that main monetary establishments, like AFC and Afreximbank, have in BUA Group’s development technique. The funding not solely validates our sturdy development prospects but additionally positions us to higher capitalize on rising alternatives.
We wish to specific our gratitude to all of the advisers concerned on this transaction, together with AFC, PAC Capital Restricted (PAC), A&O Shearman and G. Elias, whose dedication and experience have been instrumental in structuring agreeable phrases for a profitable increase. This facility will allow us to pursue alternatives which can be important to the continued financial improvement of Nigeria and Africa as a complete, and that could be a win for your entire nation and continent.”
Government Director and Head of Monetary Providers at AFC, Banji Fehintola mentioned: “The success of this transaction displays the power of AFC’s monetary advisory experience in offering top-tier strategic, company finance and technical steerage to main establishments throughout Africa. We’re proud to have performed a central function for BUA of their continued growth, driving native manufacturing, job creation and financial prosperity in Nigeria and Africa as a complete.”
Along with advising on the BUA transaction, AFC has supported a various vary of high-impact tasks on the continent lately. This consists of advising FGN Energy Firm Restricted, the Nigerian authorities’s implementation automobile for the Presidential Energy Initiative (PPI), centered on enhancing energy infrastructure within the nation, and offering strategic steerage to the Worldwide Finance Company (IFC) and the Nigerian Sovereign Funding Authority (NSIA) in creating sustainable, climate-positive financing options for Nigeria’s electrical energy distribution sector. Final 12 months, AFC offered advisory providers for twenty-four tasks totalling over US$18 billion in worth.
Distributed by APO Group on behalf of Africa Finance Company (AFC).
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Yewande Thorpe
Communications
Africa Finance Company
Cellular: +234 1 279 9654
E-mail: yewande.thorpe@africafc.org
About AFC:
AFC was established in 2007 to be the catalyst for pragmatic infrastructure and industrial investments throughout Africa throughout Africa. AFC’s strategy combines specialist business experience with a deal with monetary and technical advisory, undertaking structuring, undertaking improvement, and danger capital to handle Africa’s infrastructure improvement wants and drive sustainable financial development.
Seventeen years on, AFC has developed a observe file because the accomplice of selection in Africa for investing and delivering on instrumental, high-quality infrastructure property that present important providers within the core infrastructure sectors of energy, pure assets, heavy business, transport, and telecommunications. AFC has 43 member nations and has invested US$13 billion throughout Africa since inception.