EAIF provides US$ 20 million Senior Debt to African Foundries Limited, Nigeria.
The project involves the development, construction and operation of a steel mill plant, with a capacity of 225,000 tonnes p/a, that converts local scrap into steel reinforcing bars (“rebar”). The project will be an induction-furnace based steel mill, with plant start-up scheduled for Q2 2010. The project also includes a 40MW gas fired power plant. The plant is designed to produce high quality Thermo-Mechanically-Treated (“TMT”) rebars that will be sold in the Nigerian market and will mainly be a substitute for imported rebars.
EAIF committed US$ 20 million of Senior Debt and is part of a syndicated loan facility lead by Citibank.
The project will generate significant training and employment opportunities and will use energy from a natural gas source.