Dipo Olowookere
By Dipo Olowookere
One of the leading cement firms in Nigeria, BUA Cement Plc, is targeting some high-net-worth individuals and institutional investors to get N100 billion from them.
The fund is to be used for the operations of the company, which is intending to expand its share in the cement market in Africa.
The N100 billion to be sourced from these sets of investors will be through the issuance of corporate bonds and the maturity is seven years, according to a notice from the firm.
In the disclosure dated Wednesday, December 16, 2020, BUA Cement said it is doing a book-building for the exercise. This process involves setting the right pricing for the debt instrument.
The N100 billion bond sale, according to the statement issued by the company secretary, Mr Ahmed Aliyu, is the first tranche of the N200 billion bond issuance programme of the organisation.
Already, the Securities and Exchange Commission (SEC) has approved the book build of the N100 billion exercise, which started on Tuesday, December 15, 2020, and will end on Monday, December 21, 2020.
“BUA Cement Plc hereby notifies the Nigerian Stock Exchange (NSE) that SEC has granted approval for the company to commence book build for the series 1, up to N100 billion 7-year fixed-rate senior unsecured bonds under its N200 billion bond programme.
“The offer is open to all qualified institutional investors and high-net-worth investors as defied SEC’s rules and regulations and is scheduled to run from Tuesday, December 15 until Monday, December 21, 2020,” the notice said.
In terms of market share, BUA Cement is behind Dangote Cement, the market leader in Africa.
