By Stanley Opara

Thursday, 17 Feb 2011

Citibank Nigeria Limited has secured a $20m, five-year term loan for Bel Papyrus Nigeria Limited, a subsidiary of Boulos Group.

The loan, according to a statement by the bank on Wednesday, was supported through a partial guarantee from the Overseas Private Investment Corporation and would be used to finance the construction of Bel-Papyrus third paper mill.

OPIC is an agency of the United States government that facilitates US private investment in emerging markets by providing financing and political risk insurance.

At a recent signing ceremony, the Executive Director and Corporate Bank Head for Citibank Nigeria, Mr. Omar Hafeez, was quoted by the statement as saying, “This was an innovative deal structure which demonstrates Citi’s singular focus on delivering client solutions.

“This transaction not only helps our client expand its operations, but also ultimately has a direct impact on the Nigerian economy.”

Citibank, it added, acted as the sole lead arranger, administrative agent and facility agent on the deal.

Bel Papyrus, which has one of the largest paper businesses in the country, according to the statement, is currently operating two paper mills, Paper Mill 1 and Paper Mill 2, both producing a total of 18,000 tonnes of paper per year.

The aim of the capital expenditure project by Bel Papyrus was to expand and modernise existing production by acquiring and installing a new paper mill with a capacity of 21,000 tonnes per year, the statement explained.

Bel Papyrus’ Managing Director, Mr. Riad Baloukji said, “This new mill will allow the company to treat waste more efficiently while simultaneously enhancing volumes. We are grateful for the support of Citibank in securing this loan and helping us further our business objectives here in Nigeria.”

Citibank’s Managing Director, Mr. Emeka Emuwa, who was also present at the signing ceremony, reflected on Citi’s long-standing relationship with the Boulos Group and commended the entire team for a successful outcome.

Source: Punch