UCIF unveils investment in 28,000MT Lead recycling plant

To support its long-term growth plan, United Capital Infrastructure Fund (UCIF), an N150 billion close-ended fund sponsored by United Capital Plc, has announced its maiden investment in a brownfield lead production and exporting plant, with an initial capacity of 7,000 Metric Tonnes (MT), which has risen to 28,000MT.

The investment has been provided through a senior secured six-year medium-term refinancing facility provided to BPL Nigeria Limited (BPL), a leading exporter that trades Lead on the London Metal Exchange (LME) supplying customers in the U.S. and Asia.

BPL is a major player in the Lead Acid battery recycling market with a significant market share. Over the past decade, the company has displayed an excellent track record and was recognised by the Central Bank of Nigeria in 2014 as one of the top 100 exporters in the country.

The project is being implemented in three phases, with the commissioning of the 7,000MT refining line occurring in the first phase and the expansion to 14,000MT and 28,000MT, respectively, in subsequent phases.

According to UCIF, the investment offers long-term revenue assurance from offtake agreements, which the company has secured with its international customers.

Speaking on the investment, Chief Executive Officer of BPL, Ajibade Oluwabiyi, said: “Our goal is to leverage on our experience, technical expertise and favourable relationship with our customers to solidify our position as a market leader within the next few years.

“We are well equipped with an efficient team to achieve this feat. UCIF has proven to be an excellent partner in our journey, and we look forward to collaborating with them on our near-term expansion plans.”

Infrastructure Fund Manager and Chief Investment Officer for UCIF, Uchenna Mkparu said: “The business case for UCIF’s investment in BPL is underpinned by strong global demand for the lead which supports the company’s long-term growth projection

“BPL’s track record, attests to the company’s capacity to sustain growth in the export sector, thereby continuing to earn valuable foreign currency inflows into the economy. This investment was carried out in compliance with the fund’s investment policies and Environmental and Social Governance (ESG) guidelines.

“UCIF is an N150bilion SEC-registered fund, launched in late 2021, to provide long-term financing for infrastructure projects. This investment by UCIF paves the way for more transactions within the coming months,” he said.