Sephaku Cement had concluded a ZAR1.95bn (US$226m) funding deal with Standard Bank and Nedbank which will be put towards new capacity in South Africa.

The 10-year funding deal would provide Sephaku Cement, which is developing a production facility in the northwest and a grinding facility in Mpumalanga, with the required capital to enter the cement market.

Of the total debt capital raised, just over 50 per cent of total procurement spend would be invested locally.

Aganang, near Lichtenburg, would have an estimated production capacity of 1.2Mta of cement and the Delmas grinding facility would have a capacity of 1.4Mta. Both facilities were scheduled to be in full production by the end of 2013.