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Bank of China provides $53.1 million loan to Mamba Cement Company (Linked to Record ID#16650)
| Funder | Bank of China (BOC) |
|---|---|
| Recipient Organization | Mamba Cement Company (Pty) Ltd |
| Country | South Africa |
| Start Date | Jan 01, 2013 |
| End Date | Feb 16, 2027 |
| Duration | 5,159 days |
| Number of Grantees | 1 |
| Roles | Recipient |
| Data Source | AidData Chinese Aid |
| Grant ID | 58714 |
Grant Description
Bank of China provides $53.1 million loan to Mamba Cement Company On May 13, 2010, South African and Chinese companies signed an MoU to build a $217 million Mamba cement plant in South Africa.
In the same year, Mamba Cement Company (Pty) Ltd was jointly established by Women Investment Portfolio Holdings (of South Africa), the limestone miner Continental Cement (of South Africa), and the China-Africa Development Fund and Jidong Development Group. It was incorporated with a total investment of 1.75 billion rand (approximately $163 million).
Then, on March 28, 2013, with President Xi Jinping and President Zuma of China and South Africa present, South Africa's Nedbank (the fourth largest bank in South Africa) and Bank of China (Johannesburg Branch) signed a project financing cooperation agreement for the Mamba Cement Company (Pty) Ltd. in Limpopo Province, South Africa (曼巴水泥厂项目).
On November 21, 2013, a final agreement on the joint venture was signed (see Record ID#16650).
According to Project Finance International (PFI)'s 2014 League Tables, the Bank of China contributed 53.1 million of debt financing to the Mamba Cement Company in South Africa. The financing starts on May 21, 2014 and matures on May 21, 2024.
Hebei Provincial Building Materials Industrial Design and Research Institute, a subsidiary of Jidong Development Group, was the contractor responsible for implementation.
The Mamba cement plant, which is located approximately 40 km south of the town of Thabazimbi (along unnamed road that is connected to the R511 Highway), is a 2800-ton daily cement clinker production line equipped with a 6mw pure low-temperature waste heat power generation. The plant has an annual capacity of 1 million tons.
Construction was expected to take 18 months. Construction on the plant began in February 2014 and production commenced in October 2015.
The cement produced by the Mamba plant is sold mainly in and around Johannesburg, which is an economic hub for the continent.
This project is linked to Record ID#16650, which captures the equity financing from Jidong Development Group and the China-Africa Development Fund.
Staff Comments
The borrowing terms of the loan are unknown. Also, different sources report different amounts of debt financing from Nedbank and BOC. These amounts range from R800 million to R1.1 billion or $127 million.
Sources & References
- Mamba Cement to build new plant in Limpopo
- Concrete steps for tackling overcapacity
- Mid-Year Review
- 冀东集团南非曼巴水泥项目受到市场青睐
- 曼巴水泥项目产生样板效应
- 习大大见证的合作项目：冀东发展在南非建设水泥厂，利润是国内6倍
- 中行与南非莱利银行牵头银团贷款曼巴水泥公司
- Determinants of the Cost of Credit for Project Finance Debt in Africa
- About Mamba Cement Company
- Infrastructural investment boosted through headwinds in SA
- Africa's cement industry is expanding fast
- League Tables Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.
All Grantees
Mamba Cement Company (Pty) Ltd
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