Like Dangote, BUA Cement Owner, Rabiu Also Goes to Debt Market Over Cement Business

Like Dangote, BUA Cement Owner, Rabiu Also Goes to Debt Market Over Cement Business

  • BUA Cement founder, Abdulsamad Rabiu and Aliko Dangote, owner of Dangote Group are both in the debt market shopping for funds
  • The BUA Group chairman is asking the International Finance Corporation for an undisclosed sum to help build its Cement factory in Sokoto
  • The two cement manufacturing giants are fighting for a larger share of the cement business in Africa, especially in Nigeria

The owner of BUA Group, Abdulsamad Rubiu has joined his arch-rival, Aliko Dangote in the debt business, as both billionaires shop for capital to fund their projects.

The BUA Group Chairman approached International Finance Corporation (IFC) to get an undisclosed amount to finance the expansion of the BUA Cement business which is dominated in Africa by Dangote Cement.

Dangote Cement, BUA Cement
Abdulsamad Rubiu and Dangote Credit: Jason Alden
Source: Getty Images

BUA seeks expansion like Dangote

Read also

Nigerian Ports Authority secures fresh approval for designation of important seaport in southwest region

According to a statement from the Nigerian Exchange Limited (NGX), BUA wrote to its stakeholders and the public that the firm had begun a discussion with the IFC which serves as the lead arranger in collaboration with a number of other lenders in a collection of syndication to obtain a loan for BUA Cement’s expansion and the building of the plant in Kalabaino, Sokoto state. The plant will increase BUA Cement’s capacity from 2.0 million metric tons to 8.0 million tons annually.

PAY ATTENTION: Join Legit.ng Telegram channel! Never miss important updates!

This is after Dangote equally approached the bond market to raise N187.6 billion from the domestic pension funds, asset managers, insurance companies and high-net-worth individuals.

The richest man in Africa borrowed the funds to finance its Dangote refinery project and the petrochemical complex.

According to Ripples Nigeria, the fund is meant to aid Dangote to meet the 2023 deadline set for the commencement of operation at the refinery as any postponement next year will affect investors’ confidence. The project has been postponed twice.

Read also

Dangote gives Nigerians hope, says refinery will boost Nigeria’s forex earnings

Dangote sugar drags BUA Foods over alleged plans to suspend sale of sugar, induce scarcity

Recall that Legit.ng reported that the two major sugar manufacturers in Nigeria are up in arms against each other as they throw accusations of wanting to create artificial scarcity of Sugar.

Nairametrics reported that Dangote Sugar is reacting to the allegation by BUA foods that the firm plans to stop the sale of sugar in order to drive artificial scarcity, inflate prices and engage in profiteering.

The company said that BUA Foods has been circulating damaging rumours through a statement published in several media outlets that Dangote Sugar suspended the sale of sugar to force a price hike.

Source: Legit.ng

Online view pixel