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Lafage, Stanbic IBTC sign N45bn deal

The syndication, launched on March 31, 2009, obtained an overall 142 per cent subscription rate and involved a pool of 13 banks, including three mandated…

The syndication, launched on March 31, 2009, obtained an overall 142 per cent subscription rate and involved a pool of 13 banks, including three mandated lead arrangers & underwriters: Stanbic IBTC – which doubled as global coordinator, Guaranty Trust Bank and Standard Chartered Nigeria; seven other Nigerian banks: First Bank of Nigeria, Union Bank of Nigeria, Ecobank Nigeria, Platinum Habib Bank, Access Bank, First City Monument Bank and FSDH; and three international banks: Citibank, China Construction Bank, Standard Bank South Africa.

The Chief Executive Officer of Stanbic IBTC Bank, Mr Chris Newson, applauded the deal as “the largest commercial bank syndication executed in the Nigerian market since the beginning of the financial meltdown” and said that all the banks involved were “proud to be associated with the syndication.”

On the facility, structured to support Lafarge WAPCO’s growth strategy of strengthening Nigeria’s domestic cement production, Mr. George Lourandos, Managing Director of the company, said, “The deal we are sealing today is very significant because the Lakatabu project and many others like it is our company’s exercise in foresight. Today’s activity shows that we are making progress on this project and we will continue to deal with its future”.

Nigeria is a major importer of cement worldwide. Lafarge WAPCO’s two production sites, the Ewekoro and Sagamu plants, currently have combined capacity of 2 million metric tons of cement per annum (mmtpa).

After the Lakatabu Expansion Project, which will include the construction of a 90MW power plant, the Ewekoro Plant is expected to produce an additional 2.2 mmtpa.