Societe Generale Group, having successfully played key roles in the financing of two Greenfield Cement Production Plants in Ghana has partnered with the Danish Export Credit Agency – Eksport Kredit Fonden (EKF) to finance the first Green Cement Production Plant in Ghana, thanks to a pioneering technology developed by FLSmidth A/S.

The financing of this project was arranged and funded by Societe Generale Group, acting through its Development and Structured Export Finance, Structured Finance Group and Societe Generale Ghana. The Project is financed by two hybrid credit facilities valued at USD 51,920,000 and benefitting from a 10-year maturity.

This financing, which is the first EKF backed loan arranged by Societe Generale in Africa, is categorized as “Green” as the Project is eligible under the category of “Energy efficiency / Eco-efficient adapted products”.

The new Clay Calcination Project being undertaken by Continental Blue Investment Ghana Limited will enable the substitution of imported clinker with locally sourced clay, thereby reducing significant carbon emissions and providing cost advantage towards competition. The financing of this infrastructural project and the use of this technology (calcined clay) for production of cement with less emission of CO2 is in line with Societe Generale’s “Grow with Africa” initiative. This financing further demonstrates the bank’s commitment to innovation and sustainability, fulfilling its mission to support its cherished clients in their transition towards a greener future.

“Using clay as a supplement in the cement production is not new – it has been done for decades. But, with our new clay calciner system, we can produce a highly reactive clay that is able to substitute between 30-40% of the clinker in the final product, resulting in up to 40% CO2 reductions per ton of green cement compared to traditional OPC cement,” says Carsten Riisberg Lund, Cement Industry President, FLSmidth.

“Ghana is the perfect location for using clay as an environmentally friendly alternative to clinker,” says Frédéric Albrecht, CEO at Continental Blue Investment Ghana Ltd.

He continued; “West Africa is traditionally a clinker and cement importing region due to the lack of suitable limestone reserves. Developing countries with their young populations and a growing need for infrastructure and housing represents the future in cement consumption. Calcined clay cements are the most sustainable alternative to traditional clinker-based cement. With the support from FLSmidth and our long standing financing partner Societe Generale, we will be able to operate clay calcination on a large scale.”

This transaction was made possible by the successful collaboration between Societe Generale Group as the Arranger and Original Lender, the Danish Export Credit Agency – Eksport Kredit Fonden as Guarantor and the Project Sponsors comprising Investment Fund For Developing Countries (IFU), The Norwegian Investment Fund For Developing Countries (NORFUND), FLSmidth A/S and De Simone Limited.

“The Grow with Africa initiative which aims to contribute collectively to the sustainable development of Africa in partnership with local territories and actors as well as international experts by establishing dialogue, listening and sharing innovative means and approaches has been clearly demonstrated with this transaction” says Mr. Georges Wega, Deputy Director of International Banking Networks for the Africa, Mediterranean Basin and Overseas Region (AFMO). “This success is the result of a strong and patiently built relationship with Continental Blue Investment Ghana Limited and the greater collaboration with all the key stakeholders” he concluded.

Societe Generale Ghana is one of the leading banks in Ghana with 40-networked branches and outlets across the country. The Bank provides Retail and Corporate clients with dedicated innovative products and services aimed at satisfying and anticipating customers’ needs.