RMB supports the Ministry of Finance Nigeria in unlocking regional trade

RMB recently played a central role in concluding a landmark infrastructure project deal that will finance critical regional transport assets from Nigeria to the landlocked Niger Republic.

The bank acted as Global Coordinator and initial Mandated Lead Arranger for the provision of USD1.8bn to the Ministry of Finance in Nigeria for the development, construction, and commissioning of the 374km Kano-Maradi railway project in Nigeria.

The team worked alongside the Ministry of Finance to arrange funding from multiple sources, including development financial institutions and local currency financiers.

Chidi Iwuchukwu, Executive Director and Head of Investment Banking RMB Nigeria says, “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.”

“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,” adds Enyinna Anumudu, Senior Dealmaker and Head Infrastructure Finance RMB Nigeria.

The Kano-Maradi Railway Project is a critical infrastructure initiative that promises to bolster economic growth, enhance regional integration, diversify transportation modes, support key sectors, and foster connectivity. Together, these improvements will stimulate trade between Niger and Nigeria, and contribute to Nigeria’s 94% emissions reduction target by 2050.

Chidi Iwuchukwu continues, “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.” Similarly, RMB collaborated seamlessly with the Africa Finance Corporation, a key financing partner and stakeholder, to execute the transaction over the last three years.

The deal was complex, involving multiple institutions and processes during the execution phase of the transaction. RMB had to deploy extraordinary resources to manage the transaction while also supporting the due diligence, KYC, and onboarding requests from various lenders involved in the financing.

Chidi Iwuchukwu concludes, “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-regional trade relationships.”