BUA Cement Plc’s N115bn Series 1 Fixed Rate Senior Unsecured Bond under its N200bn Bond Issuance Programme has been admitted for listing on the FMDQ Securities Exchange Limited platform as approved by the Board Listings and Markets Committee of the Exchange.
This issuance has been described by FMDQ as the first by BUA Cement and the largest corporate bond issued in the Nigerian debt capital markets.
This was contained in a statement which also stated that the proceeds from the issuance would be used to refinance existing debt obligations of the issuer, finance its working capital as well as fund its Debt Service Reserve Account.
Speaking on the matter, the Chairman Bua Cement, Abdul Samad Rabiu, said, “This bond issue – a first by BUA Cement, demonstrates our confidence in the Nigerian debt capital markets as well as continued investor confidence in BUA Cement’s 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”.
Further statements on this by the CEO, BUA Cement, Yusuf Binji, maintained that, “The transaction, being the largest corporate bond issuance in the history of Nigeria’s debt capital markets, reiterates the strength and acceptance of BUA Cement’s 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.
“Diversifying and extending the duration of our funding sources with the inclusion of this Bond, at a competitive rate, will further enable us to achieve our strategic objectives and vision.
“We also have confidence in FMDQ Exchange, hence our decision to list the Bond on the Exchange.
“BUA Cement is profoundly grateful to the entire transaction parties, the bondholders and the regulators, who have made this become a reality today”.
Recall that the cement manufacturers had earlier in January announced that it had concluded, successfully, its N115bn seven-year rate series 1 bond.
Also, on April 13, 2021, BUA Cement’s bond was listed by the Nigerian Exchange Limited (NGX) which, according to the firm was oversubscribed by 37% to the tune of N137.82 billion.
Azuka Edokobi is a Writer , a Farmer, a Supply Chain Expert and an Entrepreneur
