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Dangote Cement Subsidiary in South Africa Secures $222 million funding

By on October 29, 2012

 

Sephaku cement, South Africa’s premier indigenous cement manufacturer which is partly owned by Aliko Dangote has secured a 10 year debt funding deal for $222 million (N34.5 billion) arranged by Sasfin Capital and jointly funded by Standard Bank and Nedbank.

A statement from the Dangote Group called the deal a major milestone.

The statement said, “The closure of the debt and commencement of the drawdown of its loans are major milestone for the Dangote Cement subsidiary and associate of Johannesburg Exchange-listed Sephaku Holdings. The agreement effectively closes the gap in terms of the required capital for Sephaku Cement to be fully prepared for market entry and a significant competitor in wholesale and retail cement trade.”

“The significance of this deal goes beyond cement. It indicates a strong new commitment to industrial development in South Africa,” says Sephaku Cement CEO Pieter Fourie.

“Through new infrastructure establishment in Mpumalanga and the North West Province and the resulting local job creation, the investment benefit will extend to provincial and community development.”

Sephaku Cement, established in 2006, was an associate of Johannesburg-listed Sephaku Holdings, a 64%-owned subsidiary of Nigeria-based Dangote Cement.

Dangote had invested more than R1.1 billion (N19.6 billion) in the venture, the largest-ever foreign direct investment in South Africa by an African company.