By Samuel Bankole
BUA Cement Plc said on Wednesday it has launched a N100 billion fixed rate senior unsecured bonds with 7-year tenor in a bid to refinance shareholder loan, fund debt service reserve account and working capital.
The cement firm in a regulatory filing with the Nigerian Stock Exchange (NSE) on Wednesday said the bond issuance was under its N200 billion Debt Issuance Programme.
According to the filing, the debt issuance is scheduled to run from Tuesday, December 15 until Monday, December 21, 2020.
“The offer is open to all qualified institutional investors and high net worth investors as define by the Securities and Exchange Commission (SEC’s) rules and regulations.”
The company has provided the book building price guidance between 7.00-7.50 percent for the debt issuance.
The issue has been assigned a rating of A by Agusto, and AA- by Datapro. The proceeds from the issuance would be utilised to refinance shareholder loan, fund debt service reserve account and for working capital purposes.
Many Nigerians business has resorted to raising funds on the domestic debt market to finance working capital and pay off existing debt due to fall in yields on fixed-income assets.
Yields on 15-year federal government bonds closed at 6.94 percent at Wednesday’s debt auction by the Debt Management Office (DMO)