China Eximbank contributes $39.37 million of debt financing for Magboro Steel Mill Project (Linked to Record ID#60922)

Project narrative

On June 24, 2008, a syndicate of banks (including China Eximbank and Citigroup) signed a $137.79 million loan agreement with WEMPCO Steel Mill Co Ltd — a special purpose vehicle (SPV)— for the Magboro Steel Mill Project. The loan has a 7 year maturity (final maturity date: June 24, 2015), China Eximbank contributed $39.7 million to the loan and Citigroup contributed $98.42 million to the loan. On the same day, WEMPCO Steel Mill Co Ltd secured an $59.05 million loan from Zenith Bank and Access Bank for the Magboro Steel Mill Project. Wempco Group (Western Metal Products Company, a Chinese owned company) also make a $64.96 million equity contribution for the same project (see Record ID#60922). The Magboro Steel Mill Project involved the installation of a 50MW generator set at the Magboro factory in order to convert imported Hot Rolled Steel coil into Cold Rolled Steel sheets using a continuous steel cold rolling process. China 20MCC Construction Co., Ltd. (20MCC) was the contractor responsible for implementation. The project officially commenced on June 15, 2011 and it was completed on November 30, 2012. Then, an official commissioning ceremony took place on on April 19, 2013. The Magboro factory, which is located in Magboro within Ogun State, now has a production capacity of 700,000 metric tons a year.