Rand Merchant Bank has concluded a landmark cross-border infrastructure project deal to finance critical regional transport assets from Nigeria to the Niger Republic.
The bank acted as the Global Coordinator and initial Mandated Lead Arranger for the provision of $1.8bn to the Ministry of Finance for the development, construction and commissioning of the 374km Kano-Maradi railway project.
The project team, according to the bank’s statement, worked alongside the ministry to arrange funding from multiple sources, including development finance institutions and local currency financiers.
The Executive Director and Head of Investment Banking at RMB Nigeria, Chidi Iwuchukwu, said, “This pivotal transaction connects regional entities, supporting trade and development in the region. The RMB team demonstrated its skill in cross-border African transactions, arranging transport assets under EPC+f arrangements for sovereign borrowers.”
Also speaking, the Senior Dealmaker and Head of Infrastructure Finance at RMB Nigeria, Enyinna Anumudu, noted that Mota-Engil Africa remained a vital partner to the bank, saying, “Mota Engil Africa continues to serve as an important partner to RMB Infrastructure Sector Solutions as the leading EPC contractor on the African continent. RMB has supported Mota Engil across its operations in Africa, as well as on projects where Mota Engil is acting as the EPC and financing contractor for sovereigns such as Nigeria, as is the case with this project.”
The Kano-Maradi railway project is a critical infrastructure initiative expected to bolster economic growth, enhance regional integration, diversify transportation modes and foster connectivity.
Together, these improvements will stimulate trade between Niger and Nigeria, and contribute to Nigeria’s 94 per cent emissions reduction target by 2050.
Iwuchukwu further stated, “We leveraged our multi-disciplinary capabilities, with the Syndications and Structured Solutions teams working alongside Infrastructure Sector Solutions to deliver a comprehensive funding solution to the Ministry of Finance of Nigeria.”
Similarly, RMB collaborated with the Africa Finance Corporation, a key financing partner and stakeholder, to execute the transaction over the last three years.
The deal was complex, involving multiple institutions and processes during the execution phase. RMB deployed resources to manage the transaction while supporting the due diligence, Know Your Customer and onboarding requests from various lenders involved in the financing.
Iwuchukwu concluded, “RMB is proud to have acted as the Global Coordinator and Initial Mandated Lead Arranger for this landmark transaction. By making this financing available for critical infrastructure and fostering successful collaboration among all parties, we have facilitated transformative, cross-regional trade relationships.”
RMB Nigeria Limited, a member of the FirstRand Group, is a corporate and investment bank providing solutions across advisory, funding, trading, corporate banking and principal investing.
