Africa Finance Corporation Facilitates Landmark US$200 Million Corporate Finance Facility for BUA Group – Africa.com
African Finance Corporation (AFC) (www.AfricaFC.org), a leading provider of infrastructure solutions on the African continent, has provided a landmark US$200 million corporate financing loan to BUA Group, a prominent Nigerian conglomerate spanning food, infrastructure, mining and manufacturing. The financing, provided by African Export-Import Bank (Afreximbank) to BUA Industries Limited, marks AFC’s second successful financial advisory assignment for BUA Group (BUA), reaffirming its commitment to drive impactful transactions that promote sustainable Sustained development and economic growth across Africa.
The financing, approved in two tranches by Afreximbank, supports BUA’s medium-term objectives by freeing up capital to pursue emerging market opportunities. The first tranche of US$150 million has been disbursed, enabling BUA to accelerate growth plans for its diverse portfolio, which includes sugar and cement production, flour milling, petroleum processing, property development, oil and gas, shipping and ports.
AFC’s partnership with BUA is integral to several key projects, including advising on the 2021 financing of BUA’s 20,000-hectare integrated sugarcane plantation and sugar mill in Kwara State. The project is helping to significantly reduce Nigeria’s dependence on imported sugar raw materials while promoting job creation and stimulating economic activity.
Kabiru Rabiu, Group Executive Director of BUA Industries Limited said: “We are delighted to have successfully raised a loan facility with Afreximbank. This collaboration underlines the confidence that leading financial institutions such as AFC and Afreximbank have in BUA Group’s growth strategy. This funding not only confirms our strong growth prospects but also enables us to Take better advantage of emerging opportunities.
We would like to express our gratitude to all advisors involved in this transaction, including AFC, PAC Capital Limited (PAC), A&O Shearman and G. Elias, whose dedication and expertise were instrumental in structuring the appropriate terms for a successful financing . This facility will enable us to pursue opportunities that are critical to the continued economic development of Nigeria and Africa as a whole, which is a win for the entire country and the continent. “
AFC Executive Director and Head of Financial Services Banji Fehintola said: “The success of this transaction demonstrates the strength of AFC’s financial advisory expertise in providing top-tier strategy, corporate finance and technical guidance to Africa’s leading institutions. We are proud to be part of BUA’s continued expansion, driving local manufacturing in Nigeria and across Africa industry, job creation and economic prosperity.”
In addition to advising on BUA transactions, AFC has supported a variety of high-impact projects across the continent in recent years. These include advisory services to FGN Power Limited, the implementation vehicle of the Nigerian government’s Presidential Power Initiative (PPI) focused on improving the country’s electricity infrastructure, and to the International Finance Corporation (IFC) and the Nigeria Sovereign Investment Authority ( IFC) provides strategic guidance. NSIA) is committed to developing sustainable, climate-positive financing solutions for the Nigerian electricity distribution industry. Last year, AFC provided consulting services on 24 projects with a total value of more than $18 billion.
Distributed by APO Group on behalf of the African Finance Corporation (AFC).
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About AFC:
AFC was established in 2007 to serve as a catalyst for pragmatic infrastructure and industrial investment across Africa. AFC’s approach combines specialist industry expertise with a focus on financial and technical advisory, project structuring, project development and venture capital to meet Africa’s infrastructure development needs and drive sustainable economic growth.
For seventeen years, AFC has been Africa’s partner of choice, with a proven track record of investing in and delivering useful, high-quality infrastructure assets that serve core infrastructure sectors such as power, natural resources, heavy industry, and transport. Basic services. telecommunications. The AFC has 43 member countries and has invested US$13 billion across Africa since its inception.
