Consumer Goods Deal Briefing: BUA Industries Limited Secures $200m loan from Afreximbank
Deal Summary
On October 16, 2024, the African Export-Import Bank (Afreximbank) disbursed the first tranche of a $200 million loan facility—an initial payment of $150 million—to BUA Industries Limited (BIL), the industrial arm of the larger BUA Group. While BUA Group oversees a diverse portfolio spanning food, cement, infrastructure, and manufacturing, BIL focuses on industrial development and operations for the conglomerate. The financing will enable the BUA Group to accelerate growth initiatives across its diverse portfolio, especially its plans to establish BUA Foods as a premier food producer in West Africa. The financing was facilitated by the Africa Finance Corporation (AFC), a long-term partner of the BUA Group. In 2021, AFC granted BIL a $200 million corporate loan facility to complete a vertically integrated sugar facility in Kwara State in Nigeria. The Afreximbank debt facility aligns with the multilateral lender’s strategic vision to boost intra-Africa trade under the African Continental Free Trade Area (AfCFTA) framework.
Terms
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Deal Rationale
Afreximbank’s $200 million facility will accelerate BUA Group’s growth initiatives, particularly its goal to establish BUA Foods as a leading food producer in West Africa. Recent partnerships with Italian firm FAVA and Turkish firm IMAS will expand pasta production to 900,000 metric tonnes and flour milling to 2.5 million metric tonnes annually, meeting rising regional demand. The consolidation of BUA’s food businesses into BUA Foods Plc between 2021 and 2024 streamlined operations...
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