BUA Cement Seeks Approval to List N115bn Bond

By Dipo Olowookere

Applications have been filed by BUA Cement for the listing of its debut N115 billion bond exercise, a statement from the cement maker has disclosed.

This followed the successful completion of the bond sale under its N200 billion bond issuance programme launched a while ago. The corporate debt instrument would be listed on two exchanges, the firm stated.

The first tranche of the paper is with a maturity of seven years and was sold at a competitive fixed rate of 7.5 per cent, with bids worth N137.8 billion received from subscribers.

The bond has a 3-year moratorium period and would be amortised evenly from the fourth year 4. It can be recalled only after 48 months from the issue date.

The series 1 fixed rate senior unsecured bond issue of BUA Cement is the largest ever corporate note issued in the Nigerian debt capital market, indicating growing investor confidence in the second-largest cement company in Nigeria.

According to the Chief Executive Officer of BUA Cement, Mr Yusuf Binji, the success of the exercise underscored the strength of the BUA Cement brand.

“The transaction, being the largest corporate bond issuance in the history of Nigeria’s debt capital market, reiterates the strength and acceptance of the BUA Cement 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,” he added.

On his part, the Chairman of BUA Cement, Mr Abdul Samad Rabiu, stated that, “This bond issuance, a first by BUA Cement, demonstrates our confidence in Nigeria’s debt capital market 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.”