Bank of China provides $53.1 million loan to Mamba Cement Company (Linked to Record ID#16650)

Project narrative

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). Mamba Cement Company (Pty) Ltd. reportedly received a $120 million loan (with a 10 year maturity and an unknown interest rate) from Nedbank South Africa and Bank of China's Johannesburg office. 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.