BUA Cement PLC, one of Africa’s largest cement companies, has announced it has successfully concluded its N115billion Series 1 Fixed Rate Senior Unsecured Bond Issue (the “Bond or Issue”) under its maiden N200billion Bond Issuance Programme. With this development, BUA Cement’s Series 1 Bond becomes the largest ever Corporate Bond issued in the Nigerian Debt Capital Markets and signposts growing investor confidence in Nigeria’s second largest cement company. According to the Company, an application will be made to dual-list the Bonds on relevant exchanges upon receipt of the necessary approvals.
BUA Cement’s N100billion Series 1, 7-years Issue priced at a competitive fixed rate of 7.5 per cent was oversubscribed to the tune of N137.82billion just as it announced that it will only utilise the N115billion in line with regulatory guidelines.
Speaking on the significance and success of the Series 1 Issue, Abdul Samad Rabiu, Chairman, BUA Cement said, “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. 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 Nigerians.”
In his comments, Yusuf Binji, Chief Executive Officer, BUA Cement said that the success of the first series in the BUA Cement Bond Issuance Programme underscored the strength of the BUA Cement brand.