Africa Finance Corporation (AFC), has facilitated a landmark US$200 million corporate finance facility for the BUA Group.
The facility, provided to BUA Industries Limited by the African Export-Import Bank (Afreximbank), marks the second successful financial advisory mandate that AFC has closed for the BUA Group (BUA).
The financing, approved by Afreximbank in two tranches, supports BUA’s medium-term objectives by unlocking capital to pursue emerging market opportunities. The first tranche of US$150 million has been disbursed, enabling BUA to accelerate growth initiatives across its portfolio, which includes sugar and cement production, flour milling, oil processing, real estate development, oil and gas, shipping and ports.
AFC’s partnership with BUA has included its advisory role in the financing of BUA’s 20,000 hectares integrated sugarcane plantation and sugar production facility in Kwara State in 2021.
Group Executive Director at BUA Industries Limited, Kabiru Rabiu said: “This facility will enable us to pursue opportunities that are vital to the continued economic development of Nigeria and Africa as a whole, and that is a win for the entire nation and continent.”
In addition to advising on the BUA transaction, AFC has supported a diverse range of projects on the continent in recent years. This includes advising FGN Power Company Limited, the Nigerian government’s implementation vehicle for the Presidential Power Initiative (PPI), focused on improving power infrastructure in the country, and providing guidance to the International Finance Corporation (IFC) and the Nigerian Sovereign Investment Authority (NSIA) in developing sustainable, climate-positive financing solutions for Nigeria’s electricity distribution sector.
By Babajide Okeowo
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