Nebank to help finance Mamba Cement

Nedbank said the agreement would bolster its relations with Bank of China and help diversify SA's cement industry.

"A master finance agreement was entered into between Nedbank Capital, Bank of China and Mamba Cement Company," said Nedbank head of infrastructure Brett Botha.

"It's an honour to formalise arrangements such as these in front of the both presidents of the two countries," he said.

The partnership between the two banks comes amid reports from the Financial Times this week that China's banks were actively targeting markets in Africa, South America and the Middle East for growth.

Industrial Commercial Bank of China acquired 20% of Standard Bank for US$5.5bn in 2007.

There was no link, however, between the agreement signed by Nedbank and Bank of China and possibilities of a partnership with the Old Mutual-owned bank.

In terms of the agreement, Botha said the two banks would provide funding worth R800m, subject to compliance with requirements of credit committees.

"Nedbank will provide R400m plus hedging and working capital facilities," Botha said. "From our side, it's an exciting project. It will result in job creation and enhanced competition in the cement industry," he added.

Nedbank was appointed as an adviser and debt and equity provider for the cement factory that will be built in Koedoeskop in Limpopo.

The factory is expected to produce about a million tons a year. It is a greenfields project.

Botha said the main equity providers were China's Jidong Development Group, one of the world's largest cement producers, in association with the China-African Development Fund.

He said the Mamba Cement Company, was a combination of Jidong Cement Company and the China-African Development Fund, Wiphold - which is led by Gloria Serobe - and developer Anton Weavind.

Source: Business Day via I-Net Bridge