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| HeidelbergCement, IFC develop cement capacities in Africa HeidelbergCement and IFC, a member of the World Bank Group, signed an agreement to support the development of local infrastructure in Sub-Saharan Africa by increasing the local supply of cement. Under the agreement, IFC and its financial partners will inject equity of up to USD 180 million in exchange for a minority stake in HeidelbergCement Group's operations in Africa. HeidelbergCement is committed to use the proceeds to invest in the expansion of local cement capacities in sub-Saharan countries supported by the International Development Association (IDA). IFC and its financial partners, which include PROPARCO, will inject equity by way of a capital increase in Scancem International ANS, a subsidiary of HeidelbergCement that runs the company's operations in Africa. The initial capital injection will amount to USD 60 million. The total equity contribution may be increased up to USD 180 million. HeidelbergCement will use the proceeds from the capital injections to expand its operations in sub-Saharan IDA countries. Part of the initial capital injection will be used to expand the cement mill capacity in Liberia. Additional projects envisaged include the construction and upgrade of mill and kiln capacities in Ghana, Togo and Gabon. The projects are expected to be implemented by 2013. write your comments about the article :: © 2010 Construction News :: home page |