South Africa: Sephaku Cement, a subsidiary of Nigeria's Dangote Cement, has secured US$223m of domestic debt funding for a US$389m cement plant and grinding facility project in Mpumalanga and North West provinces.
Two of the country's big four banks, Standard Bank and Nedbank, advised by Sasfin Capital, have jointly funded the 10-year deal. Sephaku said this was a 'strong' vote of confidence in South Africa's market and that the agreement would enable it to become a significant competitor in the wholesale and retail cement trade in the region.
Sephaku Cement, established in 2006, is an associate of JSE-listed Sephaku Holdings, a 64%-owned subsidiary of Nigerian-based Dangote Cement. Dangote had invested more than US$126m in the venture, the largest ever foreign direct investment in South Africa by an African company. The new project includes a production facility, which would produce about 1.2Mt/yr, at Aganang near Lichtenburg in North West.
