BUA Cement PLC, one in all Africa’s largest cement firms, has introduced that it has efficiently concluded its N115billion Sequence 1 Fastened Fee Senior Unsecured Bond Concern (the “Bond or Concern”) below its maiden N200billion Bond Issuance Programme. With this growth, BUA Cement’s Sequence 1 Bond turns into the most important ever Company Bond issued within the Nigerian Debt Capital Markets and signposts rising investor confidence in Nigeria’s second largest cement firm. In line with the corporate, an utility might be made to dual-list the Bonds on the related exchanges upon receipt of the mandatory approvals.
BUA Cement’s N100billion Sequence 1, 7-years Concern priced at a aggressive fastened fee of seven.5% and was oversubscribed to the tune of N137.82billion simply as the corporate introduced that it’s going to solely make the most of N115billion according to regulatory pointers.
Talking on the importance and success of the Sequence 1 Concern, Abdul Samad Rabiu, Chairman, BUA Cement mentioned, “That is the most important company bond providing within the historical past of Nigeria’s Debt Capital Markets. Final 12 months, we made a strategic choice as a proudly Nigerian firm to record BUA Cement on the Nigerian Inventory Alternate. This was according to our core technique to proceed in search of out viable funding and development alternatives inside Nigeria. This bond issuance – a primary by BUA Cement, demonstrates our confidence in Nigeria’s debt capital markets in addition to continued investor confidence within the BUA Cement enterprise mannequin, our administration crew, and long-term technique, all supported by robust credit score rankings. We stay dedicated to unlocking alternatives throughout the trade for Nigeria.”
In his feedback, Engr. Yusuf Binji, Chief Govt Officer, BUA Cement mentioned that the success of the primary collection within the BUA Cement Bond Issuance Programme underscored the energy of the BUA Cement model. “The transaction, being the most important Company Bond issuance within the historical past of Nigeria’s debt capital markets, reiterates the energy and acceptance of the BUA Cement model and the belief positioned by stakeholders within the Firm’s robust money technology capability, credit score profile and technique pushed by a properly skilled administration crew. Diversifying and increasing the period of our funding sources with the inclusion of this Bond, at a aggressive fee, will additional allow us to realize our strategic targets and imaginative and prescient.”
The BUA Cement Sequence 1 Bond, which has a 3-year moratorium interval and to be amortised evenly from 12 months 4, is embedded with a name possibility, exercisable solely after 48 months from the problem date.
In one other growth, BUA lately introduced its intention to extend its manufacturing capability to 20million metric tonnes each year (mtpa) by 2022. As well as, its latest 3million mtpa plant in Sokoto at present present process building is predicted to be prepared in 2021.
NOTES TO THE EDITORS
· ISSUING HOUSES: StanbicIBTC Capital Restricted acted as Lead Issuing Home/Bookrunner, with UCML Capital Restricted and Tiddo Securities Restricted, as Joint Issuing Homes/Bookrunners.
· ISSUE SUBSCRIPTION: The N100billion Sequence 1, 7-years 7.5% Fastened Fee Bond, due in 2027 was subscribed to the tune of N137.82billion; and in accordance with Rule 323(21) of the SEC Guidelines and Laws, 2013, the Board authorized the absorption of extra funds, not exceeding 15% of the provide of N100 billion, which interprets to N15billion and N115billion in its entirety.
· RATINGS: The Issuer and the Concern had been each assigned “A” ranking (secure) by Agusto and “AA-” (secure) by DataPro, based mostly on a secure, certified, and skilled administration crew, robust trade potential, strategic market place, low publicity to credit score threat, glorious enterprise, and liquidity profile.
· LISTING: An utility might be made to dual-list the bond on the Nigerian Inventory Alternate (the “NSE”) and FMDQ Securities Alternate (”FMDQ”).
FOR FURTHER INFORMATION:
BUA Cement Plc
‘Ladipo Ogunlesi (Investor Relations) +234 1 4610670
ABOUT BUA CEMENT PLC
BUA Cement Plc is Nigeria’s second largest cement firm and the most important producer in its North-West, South-South and South-East areas; with a mixed put in capability of 8million metric tonnes each year (mtpa) and with plans underway to extend current capability to 20million mtpa by 2022. With its Headquarters in Lagos, Nigeria, BUA Cement operates strategically from Okpella, Edo State and Kalambaina, Sokoto State.