Robust International Secures Backing for $75m Cashew Processing Facility in Ogun State

News in brief:

-GuarantCo backed a $75 million debt facility to expand cashew processing capacity in Nigeria.

-The project will create up to 900 jobs, boost exports and strengthen local agricultural value chains.

According to a press release recently published on their website, GuarantCo, a member of the Private Infrastructure Development Group (PIDG), has provided a 100% credit guarantee to support a $75 million debt facility for Robust International Pte Ltd to construct a new cashew nut processing plant in Ogun State, Nigeria.

The credit enhancement underpins a financing structure arranged through a symbiotics-managed bond platform, with the notes fully subscribed by global asset manager M&G Investments.

Expanding Domestic Processing Capacity

Nigeria is one of Africa’s largest producers of raw cashew nuts, generating an estimated 250,000 to 300,000 tonnes annually. However, less than 10% of this output is processed domestically, with most raw nuts exported unprocessed to Asian and other markets.

This export structure results in Nigeria forfeiting up to 80% of potential export value and exposes the sector to foreign exchange volatility.

The new Ogun State facility will more than double Robust’s existing processing capacity from 100 metric tonnes per day to 220 metric tonnes per day, helping to close this structural gap and strengthen local value addition.

Boosting Farmers’ Incomes and Export Earnings

The project is expected to deliver significant economic benefits, including the procurement of cashew nuts from approximately 10,000 smallholder farmers, most of whom are low-income producers.

Over the lifetime of the guarantee, the investment is projected to generate export revenues of about $335 million while deepening engagement across Nigeria’s local agricultural supply chain.

Up to 900 jobs are expected to be created through the new plant, with as many as 78% of them projected to be held by women.

Robust has also committed to increasing procurement from women farmers, with a target to raise their share from 15% to 25% by 2028 as the company expands into new regions and scales its gender-responsive farmer outreach programme.

Environmental Sustainability by Converting Waste

In addition to economic and social benefits, the new processing plant will incorporate technology to convert cashew waste by-products into value-added biomass and biofuel inputs.

This approach is designed to enhance the environmental sustainability of the operation while reducing waste across the processing cycle.

The transaction aligns with the United Nations Sustainable Development Goals (SDGs), particularly on Zero Hunger and on Industry, Innovation and Infrastructure.

The financing structure benefits from GuarantCo’s guarantee, which provided a credit uplift for the externally rated notes issued through the Symbiotics platform. The deal was executed in record time following the successful replication of similar transactions in Côte d’Ivoire and Senegal.

UK-Backed Support for Private Capital Mobilisation

British Deputy High Commissioner, Mr Jonny Baxter, said the transaction reflects the United Kingdom’s commitment to mobilising private capital into Nigeria’s productive economy through UK-backed institutions such as PIDG.

He noted that the investment supports job creation, export growth and more resilient agricultural supply chains, while complementing broader UK-Nigeria trade and investment initiatives.

GuarantCo’s Head of Africa and Middle East Investments, Mr Dave Chalila, described the transaction as the organisation’s third collaboration with M&G Investments and Symbiotics, underscoring its strategy of replicable structures to accelerate socio-economic development.

Robust International Group’s Executive Director, Mr Vishanth Narayan, said the investment strengthens the company’s long-term strategy of expanding processing capacity, deepening farmer engagement and enhancing value addition in origin markets.

Representatives from M&G Investments and Symbiotics also highlighted the role of structured credit enhancement in unlocking institutional capital for high-impact investments in emerging markets while managing currency and credit risks.