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IFC Asset Management Company has committing up to $35mn in equity to support the modernisation and expansion of HeidelbergCement AG in West Africa, utilising the IFC African, Latin American and Caribbean Fund (ALAC Fund) - a co-investment fund that invests alongside IFC in equity investments in Sub-Saharan Africa, Latin America, and the Caribbean, providing growth capital for private enterprises in these regions.

IFC, a member of the World Bank Group, also has committed $110mn in equity for HeidelbergCement AG’s African operations. The investments will help the company expand operations in Benin, Gabon, Ghana, Liberia, Sierra Leone, Tanzania, and Togo.
“This transaction is a superb example of the kind of high quality investment opportunity that exists in Africa today,” said Gavin Wilson, CEO of IFC Asset Management Company. “Sovereign and pension fund investors desire superior returns and diversification, while successful private enterprise in frontier markets requires growth capital; we are pleased to bring the two together.”

HeidelbergCement AG plans to use the capital to expand its cement mill capacity in Liberia and to fund other projects, such as the construction and upgrade of mill and kiln capacities in Ghana, Togo, and Gabon. By supporting these expansion plans, the ALAC Fund and IFC will contribute to the development of the local infrastructure and housing sectors, improve the supply and production standards of locally produced cement, and create employment opportunities.