Sococim Low Carbon Cement II

active

Sococim Industries (‘SOCOCIM, ‘the Company’ or the ‘Borrower’) (http://www.sococim.com/) is a subsidiary of VICAT S.A (‘VICAT’, ‘Sponsor’, or the ‘Guarantor’), a global cement manufacturer. SOCOCIM was established in 1948 and acquired by VICAT Group in 1999. The Sococim cement plant is located in Rufisque, 27 km  from Dakar city center, surrounded by a populated resident area and other industries that have grown over time, including (i) train Express Régional Dakar-AIBD; (ii) port Minéralier et Vraquier (bulk port); (iii) Centrale de Sendou (coal plant); (iv) Tosyali Holding (metalworks); (v) Plateforme industrielle intégrée de Diamniadio (business/education/industrial area). Currently, the plant operates kilns 3, 4 and 5 as well as a coal mill. Facilities also include a power plant, a solar park and a truck park adjacent to the plant. Raw materials are sourced from 4 quarries: Bargny, Pout, Ngoundiane and Bandia. No land or quarry expansion are planned as part of the Project. IFC has an active investment with SOCOCIM, consisting of a €120m IFC A-loan (the ‘Existing Investment’) and a €120m equivalent in Parallel Loans. The loan was committed in November 2022 and was used to construct a highly fuel-efficient kiln (kiln 6) to replace SOCOCIM’s two legacy kilns (kilns 3 and 4). Construction of kiln 6 commenced in 2022 and it is expected to finish in Q1 2025. The planned production capacity is 6,500 tons of clinker per day, or 2 million tons per year.IFC is proposing a follow-on corporate loan, consisting of a re-committable A Loan of up to €75m, to support SOCOCIM in covering working capital related to kiln 6 and additional capital expenditures linked to it (the ‘Project’). The E&S performance of the Existing Investment is Satisfactory. Most ESAP items from the existing investment have been completed and the remaining ones are on track for completion as the existing project moves into the operational phase for kiln 6 by Q1 2025.