IFC invests $48 million in greenfield cement plant
The International Finance Corporation (IFC), the private sector arm of the World Bank Group, will provide US$48mn to Domincican Republic cement company Domicem, S.A. to construct and operate a greenfield plant. This is the first greenfield investment in the country’s cement sector since 1976. The investment project, an integrated, dry-process cement plant with a 900,000t/y capacity, is estimated to cost US$96mn. IFC’s investment consists of a US$24mn “A” loan for IFC’s own account and a US$24mn syndicated B loan for the account of two international financial institutions, the International Finance Participation Trust of Canada and SANPAOLO IMI SpA of Italy. By supplying its own clinker needs domestically through this new operation, Domicem is expected to help improve the productivity and competitiveness of the country’s cement sector. The construction of this new plant is jointly sponsored by Colacem SpA, Italy’s third-largest cement group, with a 51% participation.