AFC Secures $200 Million Financing Deal for Nigeria’s BUA Group

Last Updated 2 years ago by Kenya Engineer

Africa Finance Corporation (AFC), a leader in infrastructure solutions across the continent, has facilitated a significant corporate finance facility of US$200 million for the BUA Group, a prominent Nigerian conglomerate with a presence in the food, infrastructure, mining, and manufacturing sectors. This facility, provided to BUA Industries Limited by the African Export-Import Bank (Afreximbank), represents AFC’s second successful financial advisory engagement with BUA, highlighting its dedication to supporting impactful transactions that foster sustainable development and economic growth in Africa.

Unlocking Growth Opportunities

The financing, approved by Afreximbank in two tranches, aims to bolster BUA’s medium-term objectives by enabling access to capital for emerging market investments. The first tranche, amounting to US$150 million, has already been disbursed, empowering BUA to enhance its diverse operations, including sugar and cement production, flour milling, oil processing, real estate, oil and gas, as well as shipping and port services.

This collaboration follows AFC’s advisory role in financing BUA’s 20,000-hectare integrated sugarcane plantation and production facility in Kwara State in 2021. This project has been pivotal in reducing Nigeria’s reliance on imported sugar and has contributed to job creation and increased economic activity in the region.

Statements from Key Stakeholders

Kabiru Rabiu, Group Executive Director at BUA Industries Limited, expressed gratitude for the successful completion of the financing arrangement: “We are pleased to conclude the successful raise of the loan facility with Afreximbank. This partnership underscores the confidence that leading financial institutions, like AFC and Afreximbank, have in BUA Group’s growth strategy. The funding not only validates our strong growth prospects but also positions us to better capitalize on emerging opportunities.”

Rabiu further acknowledged the role of AFC and other advisory firms: “We would like to express our gratitude to all the advisers involved in this transaction, including AFC, PanAfrican Capital Limited (PAC), A&O Shearman, and G. Elias, whose dedication and expertise were instrumental in structuring agreeable terms for a successful raise. 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.”

Banji Fehintola, Executive Director and Head of Financial Services at AFC, highlighted the corporation’s commitment to supporting African enterprises: “The success of this transaction reflects the strength of AFC’s financial advisory expertise in providing top-tier strategic, corporate finance, and technical guidance to leading institutions across Africa. We are proud to have played a central role for BUA in their continued expansion, driving local manufacturing, job creation, and economic prosperity in Nigeria and Africa as a whole.”

Broader Impact of AFC’s Advisory Services

Beyond its work with BUA, AFC has provided strategic advisory support for a variety of impactful projects across Africa. This includes its advisory role with FGN Power Company Limited, tasked with implementing Nigeria’s Presidential Power Initiative (PPI) aimed at enhancing the country’s power infrastructure. AFC has also collaborated with the International Finance Corporation (IFC) and the Nigerian Sovereign Investment Authority (NSIA) to develop sustainable, climate-positive financing solutions for Nigeria’s electricity distribution sector. In 2023 alone, AFC advised on 24 projects worth over US$18 billion.

About Africa Finance Corporation

Established in 2007, AFC is dedicated to being a catalyst for pragmatic infrastructure and industrial investments across Africa. Combining specialized industry expertise with financial and technical advisory, project development, and risk capital, AFC addresses the continent’s infrastructure needs while driving sustainable economic growth.

Seventeen years into its mission, AFC has built a reputation as a partner of choice for high-quality infrastructure projects that deliver essential services across key sectors, including power, natural resources, heavy industry, transport, and telecommunications. With 43 member countries, AFC has invested over US$13 billion in projects across Africa since its inception.

Conclusion

The recent corporate finance facility for BUA Group underscores AFC’s ongoing commitment to empowering African industries through strategic partnerships and innovative financing solutions. This landmark deal not only highlights the growth potential of African businesses but also showcases AFC’s pivotal role in fostering economic resilience and prosperity across the continent.