15 December 2014
Clifford Chance advised the financiers on a USD300 million project financing for the construction, development and operation of a cement plant and the exploitation of quarry mines in the Democratic Republic of Congo
International law firm Clifford Chance advised a group of financiers composed of development financial institutions (African Development Bank, International Finance Corporation and The Emerging Africa Infrastructure Fund Limited), a commercial bank (Habib Bank Limited) and the Danish export credit agency (Eksport Kredit Fonden) on a USD300 million project financing arranged by Habib Bank Limited for the design, construction, development, operation and maintenance of a greenfield cement manufacturing plant (and associated facilities) and the exploitation of limestone and clay quarry mines by Nyumba Ya Akiba SA in the Democratic Republic of Congo. The 1.2 million tpa plant will be located in the Bas Congo province approximately 250 km from the country’s capital city (Kinshasa) along the main Kinshasa-Matadi Highway.
The project is sponsored by a 50/50 joint venture between Lucky Cement Limited, based in Pakistan, and the Rawji Group (composed of Rawsons Investments Limited, Beltexco and Marsavco), based in the Democratic Republic of Congo. The cement plant equipment is to be supplied by FLSmidth A/S from Denmark.
Various entities of Citibank will play the roles of Agents and Account Banks.
Upon completion, the cement manufacturing plant will produce 3,000 tons of clinker per day and 3,580 tons of cement per day, making it a big step forward for the country's industrialisation through improvement of its cement market. Part of the production will be exported, and the project is expected to create more than 400 direct jobs and more than 10,000 indirect jobs.
The Clifford Chance team advising the financiers was led by Paris-based partner Nikolaï Eatwell, assisted by Alhassane Barry, Senior Associate, Nicolas Cookson, Victor Dominiak, Damone Zamanian-Yahyaei and Ngwoko Humphrey Kangha, Associates.
A London based team of Clifford Chance led by Bruce Kahl, Partner, Claudio Medeozzi, Director, Katherine Hensby, Senior Associate and Kadiatou Ba advised the Citibank teams in their various roles as Agents and Account Banks.