Paris, France, July 2, 2010—IFC,
a member of the World Bank Group, is providing financing to Vicat Sagar
Cement to support the company’s plans to build the first of two phases
of a dry-process greenfield cement plant in Karnataka, India that will
help meet the region’s growing demand for cement.
The project will create about 600 full-time jobs during operations, an
estimated 1,500 new jobs for local suppliers, and 2,500 temporary jobs
during peak construction, while stimulating additional private sector growth
and regional economic activity. The cement plant will use the latest technology
and will have a capacity of 5.5 million tons per annum based on two clinker
production lines, each with a daily capacity of 6,000 tons. The first production
line of 2.75 million tons of cement is expected to be launched in 2012.
Vicat Saga, a joint venture between Vicat SA of France and Sagar Cements
of India, where Vicat holds the majority ownership, will build and operate
this leading- edge cement plant. IFC will provide a loan of $75 million
while mobilizing commercial loans of E€55 million from Crédit Agricole
CIB, Crédit Industriel et Commercial, Natixis, and Société Générale, and
parallel loans totaling E€75 million from three Development Financial
Institutions: Proparco, DEG, and FMO. IFC, DEG, FMO, and Proparco partnered
on the financing under procedures agreed to in the Master Cooperation Agreement,
which was signed by these development institutions in October 2009
in Istanbul. This financing represents the first transaction in Asia to
follow the Master Cooperation Agreement. IFC may invest equity of up to
$15 million in Vicat Sagar.
“We are pleased to have completed the financing, with the support of all
the partner financial institutions, for our Vicat Sagar greenfield cement
plant in India on terms that the Vicat group considers to be favorable.
The financing raised demonstrates the quality of our project and the Indian
market’s very strong potential,” said Guy Sidos, Chief Executive Officer
of the Vicat group.
“IFC is pleased to support the construction of the Vicat Sagar cement
plant. The project will generate direct and indirect employment, and contribute
to the adoption of best industry practices in terms of energy efficiency
and control of emissions,” said Dimitris Tsitsiragos, IFC Director for
Global Manufacturing and Services.
IFC, a member of the World Bank Group, creates opportunity for people to
escape poverty and improve their lives. We foster sustainable economic
growth in developing countries by supporting private sector development,
mobilizing capital for private enterprise, and providing advisory and risk
mitigation services to businesses and governments. Our new investments
totaled $14.5 billion in fiscal 2009, helping channel capital into developing
countries during the financial crisis. For more information, visit www.ifc.org.
Founded in 1853, the Vicat group now operates three core business lines:
cement, readymix concrete and aggregates, as well as related activities.
The Vicat group is heir to an industrial tradition dating back to 1817,
when Louis Vicat invented artificial cement. The group has about 6,700
employees working in three core divisions, Cement, Concrete and Aggregates,
and Other Products and Services, which generated consolidated sales of
€1,896 million in 2009. The group operates in 11 countries: Egypt, France,
India, Italy, Kazakhstan, Mali, Mauritania, Senegal, Switzerland, Turkey,
and the United States. Nearly 56 percent of sales are generated outside
France. For more information, visit www.vicat.com.