By Dipo Olowookere
The series one three-year bond worth N26.4 billion issued in June 2016 by Lafarge Africa Plc has been redeemed by the company.
Lafarge Africa, in a notice today to the Nigerian Stock Exchange (NSE), said the notes were redeemed when they matured on June 15, 2019.
The bonds were sold to investors three years ago when the cement manufacturer launched its 100 billion bond programme.
At the time, the company offered the papers in two series; the first was the N26.4 billion and the second was worth N33.6 billion.
While the series one, a three-year tenor, was sold at a fixed coupon of 14.25 percent, the series two, a five-year maturity, was issued at a fixed coupon rate of 14.75 percent.
According to Lafarge Africa, the three-year notes, which matured this week, redeemed “from internally generated cashflow.”
“Lafarge Africa Plc announces the redemption of its matured N26.4 billion bond due on June 15, 2019.
“The company registered a N100 billion bond issuance programme in June 2016 out of which the sum of N60 billion was issued in Series 1 and 2 of the programme.
“The matured Series 1 Bond was issued on June 10, 2016 with a 3-year tenor and at a fixed coupon of 14.25 percent.
“The company, leveraging on its performance, its recently concluded rights issue as well as management strategic plans to systematically deleverage the company, has redeemed the Series 1 bond from internally generated cashflow.
“The outstanding balance of N33.6 billion represents Series 2 of the N100 billion issuance programme at a fixed coupon rate of 14.75 percent, a 5-year tenor and matures for redemption in June 2021,” the cement firm said.
