NIGERIA – BUA Cement Plc, a part of BUA Group, has announced that it has successfully concluded its N115 billion (US$29m) Series 1 Fixed Rate Senior Unsecured Bond Issue under its maiden N200 billion (US$51m) Bond Issuance Programme.
A statement issued by the company said the development signalled growing investor confidence in the cement company.
According to the company, an application will be made to dual-list the bonds on the relevant exchanges upon receipt of the necessary approvals.
BUA Cement’s N100 billion (US$25m) Series 1, seven-years issue priced at a fixed rate of 7.5 per cent and was oversubscribed to the tune of N137.82 billion (US$35m) just as the company announced that it would only utilise N115 billion (US$29m) in line with regulatory guidelines.
“This is the largest corporate bond offering in the history of Nigeria’s debt capital markets. Last year, we made a strategic decision as a proudly Nigerian company to list BUA Cement on the Nigerian Stock Exchange. This was in line with our core strategy to continue seeking out viable investment and growth opportunities within Nigeria,” Abdul Rabiu, chairman, BUA Cement said.
“This bond issuance – a first by BUA Cement, demonstrates our confidence in Nigeria’s debt capital markets as well as continued investor confidence in the BUA Cement business model, our management team, and long-term strategy, all supported by strong credit ratings. We remain committed to unlocking opportunities within the industry for Nigeria.”
“The transaction, being the largest corporate bond issuance in the history of Nigeria’s debt capital markets, reiterates the strength and acceptance of the BUA Cement brand and the trust placed by stakeholders in the company’s strong cash generation capacity, credit profile and strategy driven by a well experienced management team.
In another development, BUA recently announced its intention to increase its production capacity to 20million metric tonnes per annum (mtpa) by 2022. In addition, its newest 3million mtpa plant in Sokoto currently undergoing construction is expected to be ready in 2021.