By Michael Eboh
Citibank Nigeria Limited has secured a N3 billion (USD$ 20 million), five-year term loan facility for Bel Papyrus Nigeria Limited, a subsidiary of Boulos Group.

The facility which will help boost the company’s production capacity, especially the production of paper and other related products in the country, is supported through a partial guarantee from the Overseas Private Investment Corporation (OPIC).

According to a statement by Ogochukwu Ekezie, Head, Corporate Affairs, Citibank Nigeria, the facility will be used to finance the construction of Bel-Papyrus’s third paper mill.

She noted that OPIC is an agency of the United States government that facilitates U.S. private investment in emerging markets by providing financing and political risk insurance.

At the signing ceremony, she quoted Omar Hafeez, Executive Director and Corporate Bank Head for Citibank Nigeria as saying, “This was an innovative deal structure which demonstrates Citi’s singular focus on delivering client solutions.

This transaction not only helps our client expand its operations, but ultimately has a direct impact on the Nigerian economy.” She further explained that Citibank acted as the Sole Lead Arranger, Administrative Agent and Facility Agent on the deal.

She said, “Bel Papyrus, which has one of the largest paper businesses in the country, currently operates two paper mills, with both producing a total of 18,000 tons of paper per year. The aim of the capital expenditure project by Bel Papyrus is to expand and modernize existing production by acquiring and installing a new paper mill (“PM3”) with a capacity of 21,000 tons per year.”

According to Bel Papyrus’ Managing Director, Mr. Riad Baloukji, “This new mill will allow the company to treat waste more efficiently while simultaneously enhancing volumes. We are grateful for the support of Citibank in securing this loan and helping us further our business objectives here in Nigeria.”