In addition, over 2,000 direct and indirect jobs would be created, ensuring a source of livelihood for many Nigerians.
Stanbic IBTC Capital and Stanbic IBTC Bank, both subsidiaries of Stanbic IBTC Holdings PLC, acted as the sole arranger and lender respectively on the N6 billion medium-term facility to Kellogg Tolaram Nigeria Limited to finance the construction of a new cereal manufacturing plant in the Lekki Free Trade Zone, Lagos, Nigeria.
The factory, with a capacity to produce10,000 metric tonnes of cereal per year, was commissioned on Friday, 1 December 2017, by the Chairman of Kellogg Inc. and the Chairman of Tolaram Group, alongside some invited guests including Chief Executive of Stanbic IBTC Bank PLC. Kellogg Tolaram Nigeria Limited, a joint venture between the Kellogg Company and Tolaram Group, was set-up to manufacture snacks and breakfast foods for the West African market.
The Chairman of Kellogg Company, John Bryant, expressed his delight at the commissioning of the ultra-modern facility in Nigeria, stating that this investment goes to demonstrate the Company’s commitment to the Tolaram partnership as well as to Nigeria and the West African market.
He commended the Lagos State Government and other stakeholders for the support that has been provided to Kellogg Tolaram Nigeria Limited.
On his part, the Chairman of Tolaram Group, Mohan Vaswaniname, stated that this factory is an important milestone for the company as the factory will ensure that the globally popular Kellogg brand of cereal can now be enjoyed by the Nigerian consumers in a much greater scale and that Nigerian consumers stand to benefit from the healthy offering from the Kellogg range of breakfast cereals. He also commended Stanbic IBTC for providing an innovative debt financing solution to support the completion of the factory.
Earlier, in his remarks, Chief Executive, Stanbic IBTC Bank, Dr Demola Sogunle, said the Standard Bank Group, to which Stanbic IBTC Holdings PLC belongs, is delighted to be involved in this landmark project. He said the deal reinforces the group’s commitment to playing a pivotal role in developing the Nigerian economy, which is informed by the knowledge that manufacturing and infrastructure underpin socio-economic development.
“We are undoubtedly delighted to be associated with this historic project. Our facility to Kelloggs Tolaram Nigeria Limited is an opportunity that comes with great benefits, not just to the company but also to the Nigerian economy. Our involvement is yet another testament to our commitment to industrial development in Nigeria. We are particularly elated to be instrumental in the development that would significantly deepen the economy, and more importantly, help to create job opportunities in the country,” Sogunle stated.
The project, according to the Group Chief Executive Officer, Tolaram Group, Deepak Singhal, is expected to save Nigeria significant foreign exchange as the project has huge backward integration potential in terms of the supply of locally sourced raw materials which will further support the local industries and farmers.