IFC may co-finance BBM Cements project

Ownership of BMM Cements Limited, India, is being transferred to Sagar Cements Limited. BMM Cements has a 0.95 million tpy integrated cement plant in Andhra Pradesh, which was commissioned in 2012, but which has been running under capacity since inception. Sagar Cements plans to turn the plant around by improving its operational efficiency and restructuring the balance sheet by injecting long-term capital including refinancing debt to extend maturities. The International Finance Corporation (IFC) proposes to part finance the company’s plan, subject to the transfer of ownership and completion of all regulatory formalities related to the transaction.

IFC’s input would be around Rs.2 billion (US$33 million) as long-term debt finance. The total project cost is estimated at US$104 million, which would be partly financed through equity contribution of US$47.5 million, working capital loans of US$6.5 million and long-term debt of US$50 million, including IFC’s investment.

The project to turn BMM Cements around will help protect the existing more than 1500 jobs and will also create approximately 500 – 700 new direct and indirect jobs.

Adapted from IFC document by Katherine Guenioui

Read the article online at: https://www.worldcement.com/asia-pacific-rim/09062015/ifc-may-co-finance-bbm-cements-project-972/