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United Capital Infrastructure Fund Makes its Maiden Investment in 28,000MT Lead Recycling Plant

Oct 31, 2022   •   by   •   Source: United Capital   •   eye-icon 798 views

United Capital Infrastructure Fund (UCIF), a N150bn close-ended fund sponsored by leading investment bank and financial services group, United Capital Plc, has announced its maiden investment in a brownfield lead production and exporting plant, with an initial capacity of 7,000 metric tonnes, rising to 28,000 metric tonnes.

 

The investment has been provided via a senior secured 6year medium-term refinancing facility provided to BPL Nigeria Limited ("BPL"). This leading exporter trades Lead on the London Metal Exchange (LME), supplying customers in the US and Asia. BPL is a major player in the Lead Acid battery recycling market with a significant market share.  The company has displayed an impressive track record and was recognized by the Central Bank of Nigeria (CBN) in 2014 as one of the top 100 exporters in the country. 

 

The project is being implemented in three (3) phases, with the commissioning of the 7,000MT refining line occurring in the first phase and the expansion to 14,000MT and 28,000MT, respectively, in subsequent phases. The investment offers long-term revenue assurance from the company's offtake agreements with its international customers.

 

Ajibade Oluwabiyi, the Chief Executive Officer of BPL, said, "Our goal is to leverage our experience, technical expertise and favourable relationship with our customers to solidify our position as a market leader within the next few years. We are well equipped with an efficient team to achieve this feat. UCIF has proven to be an excellent partner in our journey, and we look forward to collaborating with them on our near-term expansion plans".

 

Uchenna Mkparu, the Infrastructure Fund Manager and Chief Investment Officer for United Capital Infrastructure Fund, added, "The business case for UCIF's investment in BPL is underpinned by strong global demand for lead metal which supports the company's long-term growth projections.  BPL's track record attests to the company's capacity to sustain growth in the export sector, thereby continuing to earn valuable foreign currency inflows into the economy.   The investment complied with the fund's investment policies and Environmental and Social Governance (ESG) guidelines. 

 

UCIF is a N150bn SEC-registered fund launched in late 2021 to provide long-term financing for infrastructure projects. This investment by UCIF paves the way for more transactions within the coming months.

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