AFRICAN FOUNDRIES LIMITED
Status: Completed investmentWhy disclosure?
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In case of questions
In case of questions, please contact us at disclosure@fmo.nl
Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
African Foundries Limited (AFL) is a producer of steel reinforcement bars in Nigeria. It has been an FMO client since 2009.
What is our funding objective?
The purpose of our loan is to refinance the expansion of AFL's factory with a shredder (to shred the scrap metal in smaller bits), a furnace (to save heat), and an Argon Oxigen Decarborator (to decarborate oxygen). This CAPEX allows AFL to produce a high grade of steel reinforcement bar (rebar) that meets international standards (BS4449 standard), which is unique in Nigeria since these types of rebars are mostly imported. The total transaction size was USD 30 mln. FMO financed USD 12.5 mln and catalyzed another USD 12.5 mln from our partners at the Emerging Africa Infrastructure Fund (EAIF), while Finnfund followed as parallel Lender with a ticket of USD 5 mln.
Why do we fund this investment?
Rebars are used in infrastructure and construction projects and are a necessary measure to reinforce concrete. The fact that AFL is a local rebar producer means that it contributes to the development of the Nigerian economy which fits well with FMO's overall strategy.
- Website customer/investment
- http://www.africanfoundries.com
- Region
- Africa
- Country
- Nigeria
- Sector
- Infrastructure, Manufacturing and Services
- Effective date
- 12/18/2015
- End date
- 2/13/2020
- Total FMO financing
- USD 12.50 MLN
- Funding
- FMO NV
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Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - B+