ICBC provides $166.6 million buyer’s credit loan for Settat Cement Plant Construction Project

On December 4, 2015, the Industrial and Commercial Bank of China (ICBC) and Anouar Invest — a private Moroccan company — signed a $171 million financing agreement for the Settat Cement Plant Construction Project. Then, in May 2016, ICBC, Anouar Invest, and Bank of Africa [formerly the Moroccan Bank of Foreign Commerce, (Arabic: البنك المغربي للتجارة الخارجية‎) or BMCE Bank] signed a tripartite financing agreement for the Settat Cement Plant Construction Project. ICBC reportedly issued a $166.6 million buyer’s credit loan with an interest rate of 6-month LIBOR (0.933% in May 2016) plus a 3.15% margin. Sinosure reportedly agreed to provide buyer’s credit insurance to the borrower. The borrower (Anouar Invest) and its subsidiary (Atlantic Ciment S.A.) were to use the loan proceeds to partially finance a $203 million commercial contract with Sinoma-CDI. European Bank for Reconstruction and Development (EBRD) reportedly agreed to provide MAD 554.2 million dirhams in financing for the project. The purpose of the project was to construct a cement plant in the province of Settat with a production capacity of 2.2 million tons of cement per year. Sinoma-CDI — a consortium that consists of Sinoma International Engineering Co., Ltd. and Chengdu Design & Research Institute of Building Materials Industry Co., Ltd. (CDI) — was the contractor responsible for implementation. It was originally envisaged that construction would begin during the second half of 2016 and the cement plant would be commissioned in early 2019. However, it does not appear that this project ever reached implementation. In 2019, Atlantic Ciment S.A. agreed in principle to sell its 100% ownership stake in the project to Ciments du Maroc (CIMAR), which is a Moroccan construction materials company and a subsidiary of Germany's HeidelbergCement. The acquisition was completed in May 2020.

Additional details

1. The Chinese project title is 200万吨水泥厂项目. The French project title is la construction d’une cimenterie dans la province de Settat.

Number of official sources

10

Number of total sources

21