Bua Cement raises N115 bln 7-year debt at 7.5% fixed rate
BUA Cement has concluded its N115 billion Series 1 Fixed Rate Senior Unsecured Bond Issue under its maiden N200 billion Bond Issuance Programme.
According to the company, an application will be made to dual-list the bonds on the relevant exchanges upon receipt of the necessary approvals.
The N100 billion has 7-year tenor and was issued at a competitive fixed rate of 7.5 percent, the company stated.
It said the debt paper was oversubscribed to the tune of N137.82 billion above the reserve threshold.
The company said the proceeds from the debt issuance will be utilised in line with regulatory guidelines.
The N100 billion Series 1, seven-year 7.5 percent Fixed Rate Bond, due in 2027, was subscribed to the tune of N137.82 billion.
The statement from the company said in accordance with Rule 323(21) of the SEC Rules and Regulations, 2013, the Board approved the absorption of excess funds, not exceeding 15 percent of the offer of N100 billion, which translates to N15 billion and N115 billion in its entirety.
The company said it will file an application for dual-list the bond on the Nigerian Stock Exchange (NSE) and FMDQ Securities Exchange (FMDQ).
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 Nigeria,” Rabiu said.