The project aims to leverage Nigeria's abundant yet underexploited natural resources by utilizing clay to manufacture high-quality porcelain tiles for both domestic and international markets.

Mr. Adebisi Abidemi Adebutu, Group President of R28 Holdings with Mrs. Kanayo Awani, Executive Vice President Intra Africa Trade and Export Development, Afreximbank

Afreximbank and Veenocks Limited have entered into a project preparation facility agreement to finance the development of Veenocks' porcelain tile manufacturing plant in Sagamu, Ogun State, Nigeria.

The plant, which will be an indigenously owned state-of-the-art facility, will have an annual production capacity of 6.6 million square meters of floor and wall tiles. The estimated investment cost of the project is US$117 million.

Mrs. Kanayo Awani, Executive Vice President of Intra-African Trade and Export Development Bank, signed the facility agreement on behalf of Afreximbank, while Mr. Adebisi Abidemi Adebutu, Ultimate Beneficial Owner of Veenocks Limited, signed for the company.

According  to the terms of the facility agreement, the project preparation facility will be deployed during the pre-investment stage to mitigate risks and expedite its progress towards bankability. This early intervention serves as a strong market signal of Afreximbank's commitment to the project. Furthermore, Afreximbank will assume the role of the Mandated Lead Arranger and spearhead the debt syndication process, with the option to incorporate credit enhancements if necessary.

The project aims to harness and enhance Nigeria's underutilized natural resources by utilizing clay to manufacture porcelain tiles for both domestic and international markets. By employing proven technology, the country will be empowered to exploit its natural resources on a larger scale. In addition to generating over 700 job opportunities during its operational phase, the project is anticipated to yield exports valued at approximately US$11.4 billion.

Commenting on the agreement, Mrs. Awani detailed that the facility agreement reflected Afreximbank's commitment to advancing impactful projects in Nigeria and beyond, as well as its dedication to leveraging its diverse product suite to offer comprehensive solutions throughout the project finance value chain.

She further elaborated that the holistic approach exemplified the Bank's comparative advantages in supporting its member countries to implement projects efficiently and effectively, and its unwavering support for indigenous African investors establishing state-of-the-art manufacturing facilities.

The demand for tiles in Nigeria was estimated to reach 210 million square meters in 2023, with local production standing at 137 million square meters. This demand is projected to surge to 270 million square meters by 2027.

Mr. Adebisi Abidemi Adebutu, Group President of R28 Holdings, the parent company of Veenocks, stated, “We are thrilled to welcome Afreximbank as a key partner in Veenocks’ journey towards sustainable growth. Once fully implemented, our state-of-the-art factories will set a new benchmark for world-class facilities in Africa, showcasing our commitment to excellence and innovation. This strategic partnership with Afreximbank marks a significant milestone in Veenocks’ expansion plans, enabling the company to leverage the Bank’s expertise and resources to drive growth and development in the region. With this collaboration, Veenocks is poised to make a meaningful impact in the industry, fostering economic growth and creating opportunities for communities across Africa.