Abdulsamad Rabiu joins Aliko Dangote in cement sector debt market

BUA Group founder Abdulsamad Rabiu has joined rival Aliko Dangote in the debt market as the two billionaires need capital to fund their projects.

Rabiu has approached foreign creditors, such as the International Finance Corporation (IFC), to borrow an undisclosed amount to finance the expansion of its BUA Cement business, which is in the same market as Dangote Cement.

In a statement obtained from the Nigerian Exchange Limited (NGX), BUA wrote to its shareholders and the investing public that the company “has entered into discussions with the International Finance Corporation (IFC), acting as lead arranger in conjunction with a number of other lenders in a syndication pool, to secure a loan for the expansion of BUA Cement’s integrated cement plant in Kalambaina, Sokoto State, Nigeria, which will include increasing its capacity to 2.0 million tonnes per annum (MTPA) to 8.0 MTPA and the development of other ancillary utility facilities (the Expansion Project).

Also Read:Abdulsamad Rabiu Drops to Sixth in African Rich List After Losing N12.40 Billion, Dangote Retains Top Spot

It comes after Dangote also approached the bond market to raise N187.6 billion from national pension funds, asset managers, insurance companies and high net worth investors.

Dangote borrowed the money to fund its proposed Dangote Oil Refinery and Petrochemical Complex, two months after Fitch Ratings announced the company would raise money in the bond market.

The capital raise is intended to help Dangote beat the 2023 timetable to start operating the refinery, as Fitch said any delay to next year will affect its investors’ confidence. Dangote postponed the start twice.

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John A. Bogar