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🇳🇬 Nigeria /Energy & Infrastructure

RMB finalizes $1.8bn Nigeria-Niger railway deal

From The Punch · () English

Translated from English, summarized and contextualized by DistantNews.

At a glance

News Named sources Outcome reported
  • Rand Merchant Bank arranged $1.8 billion in financing for the Kano-Maradi railway project connecting Nigeria and Niger.
  • The project aims to boost economic growth, regional integration, and connectivity, while also supporting Nigeria's emissions reduction targets.
  • The complex transaction involved multiple institutions and took three years to execute, with RMB acting as Global Coordinator and Initial Mandated Lead Arranger.

Rand Merchant Bank has finalized a significant cross-border infrastructure deal, securing $1.8 billion for the development of the Kano-Maradi railway project. This critical initiative will connect Nigeria and the Niger Republic, spanning 374 kilometers.

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.

— Chidi IwuchukwuExecutive Director and Head of Investment Banking at RMB Nigeria, explaining the significance of the railway project.

The project's financing was coordinated by RMB Nigeria, which acted as the Global Coordinator and Initial Mandated Lead Arranger. The funding was sourced from a mix of development finance institutions and local currency financiers. Chidi Iwuchukwu, Executive Director and Head of Investment Banking at RMB Nigeria, highlighted the transaction's importance in connecting regional entities to support trade and development. He also noted the RMB team's expertise in African cross-border transactions.

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.

— Enyinna AnumuduSenior Dealmaker and Head of Infrastructure Finance at RMB Nigeria, discussing the partnership with Mota-Engil Africa.

Enyinna Anumudu, Senior Dealmaker and Head of Infrastructure Finance at RMB Nigeria, emphasized the ongoing partnership with Mota-Engil Africa, the project's leading EPC contractor. RMB has a history of supporting Mota Engil's operations across Africa, including projects where the contractor also handles financing for sovereign borrowers.

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.

— Chidi IwuchukwuChidi Iwuchukwu further elaborating on the collaborative effort to secure funding.

The Kano-Maradi railway is poised to stimulate economic growth, enhance regional integration, and diversify transportation options. Furthermore, it is expected to contribute to Nigeria's goal of reducing emissions by 94% by 2050. Iwuchukwu added that RMB utilized its multi-disciplinary capabilities, including its Syndications and Structured Solutions teams, to provide a comprehensive funding solution. The Africa Finance Corporation was also a key financing partner in the three-year execution of this complex deal, which required RMB to manage extensive due diligence and onboarding processes for various lenders.

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-regi

— Chidi IwuchukwuChidi Iwuchukwu concluding remarks on RMB's role and the project's impact.
DistantNews Editorial

Originally published by The Punch in English. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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