Nedbank Capital and the Bank of China Johannesburg have announced the raising of debt capital to fund Mamba Cement, a new entrant into the Southern African cement industry.
This is one of the first pure limited recourse project finance deals undertaken and funded by Chinese entities on the African continent.
The equity required was provided by the Jidong Development Group (majority shareholder in the project), the China-Africa Development Fund and WIPHOLD.
The R1,1 billion funding was structured on a greenfields project finance basis, a complex arrangement requiring thorough technical, financial and legal due diligence contracted through a multitude of project, finance and security agreements.
Mamba Cement will manufacture high-quality, cost-effective pure cement with a sustainable transport advantage due to its proximity to the major cement demand centres of Johannesburg, Pretoria, Mpumalanga, Rustenburg and Brits.
Based on the success of the Mamba Cement project, Jidong has approached Nedbank Capital and Bank of China Johannesburg to act as its banking partners in its expansion efforts into the rest of the continent.
When completed in Northam, Mamba Cement‘s capacity will be over one million tonnes per annum and it will provide employment and SMME supplier growth, particularly for lower income communities north of Brits. Sponsors and developers have also committed to supporting local schools and development initiatives and improving basic infrastructure.