The UUBO Banking and Finance team is pleased to have advised GuarantCo Ltd, together with Pinsent Masons LLP acting as English Counsel, in connection with the provision of a 100% credit guarantee of up to USD75 million to Robust International Pte. Ltd to secure funding for the construction of a large-scale cashew processing plant in Ogun State, Nigeria.
The guarantee structure facilitated the unlocking of a debt facility provided by a Symbiotics-arranged bond platform, which in turn issued notes fully subscribed by M&G Investments.
This transaction represents a significant milestone in mobilising private capital for Nigeria's agro-processing and industrial value chain. The new cashew plant is expected to stimulate the local economy through the purchase of cashew nuts from up to 10,000 primarily low-income smallholder farmers and to create employment for up to 900 people, with up to 78% to be held by women.
It is anticipated that the new plant will more than double Robust's existing daily processing capacity from 100 metric tonnes to 220 metric tonnes and will incorporate technology enabling the conversion of waste by-products into value-added biomass and biofuel input.
The UUBO team was led by Banking and Finance Partner, Joseph Eimunjeze, with support from Senior Associate, Chisom Okolie, and Associates, Oluwatobi Akintayo, Tochukwu Nwankwo, and Josephine Ukpong.