Stanbic Bank? has closed a US$20.15million loan deal with Western Diamond Cement Limited, a company in the West African Cement SA (WACEM) Group, to build a cement production plant in the Western Region.
The one million metric tonne per annum cement factory will be located at Egyam Bokro near Takoradi. Production will start in 2014. The current cement production capacity in Ghana is 5.2 million metric tonnes per year. The factory brings to four the number of cement production factories operating locally, with an additional one bagging imported cement.
Speaking at a signing ceremony in Accra, the Chairman of WACEM Group Manubhai Jethabhai Patel said the Group is committed to developing the natural resources of countries they operate in, and this applies to Western Diamond Cement Limited.
?Our group seeks to develop the local resources of the countries we operate in for the benefit of the people. That is why we invest in the basic needs of industry. We move into countries to help in the infrastructure development process. This facility from Stanbic Bank will go a long way to ensure that we achieve our aim of making cement easily accessible to the people of Ghana,? he said.
WACEM has two associate companies currently operating in Ghana, namely Savanna Diamond Cement Limited (SDCL) in the Northern Region and Diamond Cement Ghana Limited (DCGL) in the Volta Region.
Commenting, Chief Executive of Stanbic Bank Ghana Alhassan Andani said: ?Our purpose as a bank is to improve lives. In our activities and operations, we commit to ensuring that the end results bring progress to the people. As a developing economy, cement is critical to the infrastructure development process and we are delighted to be financing a project that will make cement easily available to Ghanaians.?
Stanbic Bank?s relationship with the WACEM Group started in 2011. WACEM has cement factories in most parts of West Africa including Nigeria, Cote D?Ivoire, (Nigeria and Cote D?Ivore are in project stage) Niger and Burkina Faso, and has recently commissioned a factory in Mali.
Stanbic has also in the past secured financing for a number of high-ranking businesses, all aimed at expanding and contributing to development of the economy?s Corporate Sector.
Head of Stanbic Corporate and Investment Banking Unit Kwamina Asomaning said: “Stanbic Bank CIB has consistently demonstrated its commitment to support Ghana’s infrastructure base. Cement is crucial in any physical development agenda. Adding a fourth factory to the local cement production structure will mean more jobs to people, and improvement in incomes. We enter into partnerships which produce results that matter.”
The Head of Investment Banking at Stanbic Bank, Sam Botchwey, said the deal with Western Diamond Cement Limited is yet another manifestation of Standard Bank Group?s unique financing capabilities.
?This landmark deal underscores the structuring and execution capacity of Stanbic Bank and Standard Bank Group as a whole. Our vast network in Africa and across the globe enables us to leverage skills and synergies across borders to provide solutions and connect our clients to resources that move their business forward,? he said.