SOCOCIM INDUSTRIES

Sococim Low Carbon Cement - Financing

Borrower (s)
SOCOCIM INDUSTRIES
Industry
Manufacturing & equipment/Cement
Area of finance
Development Bank Finance
Region
Africa
Countries
Senegal

Deal Overview

IFC is partnering with Sococim Industries, Senegal's largest integrated cement manufacturer, to support the decarbonization of the country's industrial sector. IFC arranged a €242 million financing package for Sococim, a subsidiary of French cement maker Vicat. The package...

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IFC is partnering with Sococim Industries, Senegal's largest integrated cement manufacturer, to support the decarbonization of the country's industrial sector. 

IFC arranged a €242 million financing package for Sococim, a subsidiary of French cement maker Vicat. The package comprises a €120 million loan from IFC's own account and €122 million equivalent in local currency parallel loans from commercial banks. 

The majority of the financing – €214 million – will be earmarked for green activities, making it IFC's first green loan for base-material manufacturing in Africa. While cement is a critical building material, the industry is carbon-intensive, especially during the production of clinker, a key component of cement. The funds will support Sococim's long-term financing needs, which include a €260 million investment to modernize its clinker-producing plant near Senegal's capital, Dakar.  

The company plans to replace part of its current clinker lines with one new fuel-efficient one, utilizing up to 70% of alternative fuels and boosting energy efficiency. That will help reduce greenhouse gas emissions by 312,000 tonnes of CO2 equivalent per year by 2030 — enabling Sococim to produce cement with one of the lowest emission rates in the world.


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Deal Volume
$250.63m
Financial Close
15 December 2022

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