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BUA Cement Owes IFC, Banks N418.2bn
BUA Cement Plc is owing the IFC, and seven local banks a combined N418.2 billion.
The lenders, apart from the International Finance Corporation (IFC), includes, First Bank of Nigeria Plc, Union Bank of Nigeria Plc, Fidelity Bank Nigeria Limited, Providus Bank, First City Monument Bank Limited, Coronation Merchant Bank Limited, and FBNQuest Mechant Bank Limited.
This was disclosed by the bank in its 2023 financial statement, filed to the Nigerian Exchange (NGX), and seen by RocketParrot News.
The cement manufacturers has an11million metric tonnes of total installed production capacities across its plants nationwide, and is aiming for 17 million MT by 2027.
A breakdown of its borrowed loans are as below:
“The amount of N264.1 billion ($291.1 million) represents an amount payable by the Company on a 9-year term loan granted by IFC and other lenders (African Finance Corporation, African Development Bank, and Deutsch Investitions) on 27 April 2023.
“The First Bank borrowing was secured with land and building comprising factory buildings, warehouses and other buildings; and plant and machineries of the Company. The amount of N104 million represents the outstanding balance from two (2) long term loans and one short term loan granted by First Bank of Nigeria Plc. The long term loans have an outstanding balance of N3.3 billion and N14.1 billion each with a maturity date of 30 June 2024.
“The loans are at a floating interest rate of 19% (2022: 17%).
The short term loan is an import trade finance loan and it has an outstanding balance of N86.8 billion at a floating rate of 10%,” the statement read.
Also, It was discovered that the Union Bank of Nigeria Plc N20 billion was obtained via CBN intervention fund for a period of 10 years with effect from October 2020 at an interest rate of 5% per annum until August 2022 and then 9% afterwards.
The statement pegged Fidelity Bank Nigeria Limited debt to N20 billion obtained via CBN intervention fund for a period of 10 years with effect from October 2020 at an interest rate of 5% per annum until August 2022 and then 9% afterwards.”
As the company grapples with its substantial debt burden, industry observers, investors, and stakeholders are anxiously expecting updates on the progress of the debt.
The coming days are poised to provide more clarity on BUA Cement's financial outlook and its ability to address the 418.2 billion debt owed to the IFC and banks, as the company strives to secure its financial stability and future in a challenging economic environment.
