CDB provides $26 million loan to CNG Glass Nigeria for Float Glass and Online Solar Control Coated Glass Production Line Project

On January 22, 2018, the Dalian Branch of China Development Bank and CNG Glass (Nigeria) FZE [中玻（尼日利亞）自貿區公司] — a special purpose vehicle and wholly-owned subsidiary of China Glass Holdings Limited (CGHL) — signed a $26 million loan facility agreement for a Float Glass and Online Solar Control Coated Glass Production Line Project. This loan has a 5 year maturity. CNG (Nigeria) Investment Ltd also provided equity investment and a non-shareholder loan for this project. On December 21, 2017, and May 10, 2018, the World Bank Group’s Multilateral Investment Guarantee Agency (MIGA) agreed to issue guarantees of up to $30,452,058 to China Development Bank (CDB) of China and of up to $41,360,000 to CNG (Nigeria) Investment Ltd. (CGIL) of Hong Kong, respectively, for their non-shareholder loans, shareholder loans and equity investments into CNG Glass (Nigeria) FZE in Nigeria. The guarantees were issued for up to five years for the shareholder and non-shareholder loans, and for up to ten years for the equity investment against the risks of Expropriation, Transfer Restriction, and War and Civil Disturbance. Beijing Qinchang Glass Co., Ltd.（北京秦昌玻璃有限 公司), an indirect wholly-owned subsidiary of the CGHL, also agreed to provide mortgage over its legally owned industrial property and apartment, to the CDB for the liabilities of the borrower [CNG Glass (Nigeria) FZE] under the loan agreement. The Float Glass Plant Construction Project involves the design, construction and operation of a float glass manufacturing plant with a capacity of 500 tons per day (tpd) in Nigeria’s Ogun Guangdong Free Trade Zone, about 30-km from Lagos. The project will require an area of approximately 250,000 m2, and will include construction of a raw material storage warehouse and batching; float glass combined workshop; finished products warehouse; cooling water circulation system; protective gas preparation system; furnace and chimney; and offices and worker accommodation. The production process consists of charging the raw materials required to make clear or colored glass through weighing, mixing and conveying to the furnace which produces molten glass. The molten glass then passes into a bath of molten tin where the temperature is gradually reduced and the glass sheets can be pulled off the bath by rollers. Variation in the flow speed and roller speed enables glass sheets of varying thickness to be formed. This is followed by annealing, cutting and loading. The project will also include construction of a natural gas power generating system (installed capacity 6 MW) and a back-up diesel generating system (installed capacity 6 MW). Natural gas will be supplied by the local natural gas company via a pipeline, which has already been constructed to supply the Ogun Guangdong Free Trade Zone (see Project ID#52477). Diesel will be brought to site via truck. The project is located within the OGFTZ located in the Igbessa Region of Ogun State. The zone opened in 2009 as a partnership between the Ogun Statement Government and the Guangdong Provincial Government in China. A total of 10,000 ha has been allocated for the zone, but thus far, only 250 ha has been developed (i.e. land prepared and fully fenced). As of March 2016, 27 companies were operating within the zone and an additional 14 have committed investments. Raw materials for the glass production, including silica sand, dolomite, feldspar, limestone, glauber salt and coal powder, will be sourced domestically. Soda ash will import from overseas. Raw materials will be transported via powder truck by a licensed contractor. Both raw materials and the final product will be transported by existing roads. China Glass Holdings Limited (CGHL) is constructing the float glass and on-line solar control glass production line with a capacity of 500tpd. The project will be developed and operated by CNG Glass (Nigeria) FZE. Three sub-contractors are also involved in construction: SinoSunny Nigeria Company Ltd.; Shaanxi Nigeria Company Ltd.; and China Railway Construction Nigeria Company Ltd. (CRCC). All three are Chinese companies that are incorporated locally and have been operating in Nigeria for many years. Civil works were underway and expected to reach completion by the end of 2016. The plant’s machinery was expected to be shipped to Nigeria by March 2017 and its commercial operation date (COD) was scheduled for September 2017. Natural gas was expected to be supplied by the local natural gas company via a pipeline, which has already been constructed to supply the Ogun Guangdong Free Trade Zone. The float glass manufacturing plant was ultimately put into production on October 18, 2019.

Additional details

The Chinese project title is 日产500吨的浮式液化天然气生产装置.

Number of official sources

10

Number of total sources

17