By Dipo Olowookere
The N115 billion bond recently issued BUA Cement Plc will be listed on the trading platform of the Nigerian Stock Exchange (NSE).
This is because the stock exchange has authorised the listing of the corporate debt instrument sold by the leading cement maker to investors.
The N115 billion note was issued under the company’s N200 billion debt programme and was the largest ever corporate paper issued in the Nigerian debt capital market.
Subscriptions worth N137.8 billion were received from subscribers for the series 1 bond with a maturity of seven years and a competitive fixed rate of 7.5 per cent.
The paper has a 3-year moratorium period and would be amortised evenly from the fourth year. It can be recalled only after 48 months from the issue date.
After the bond was sold, BUA Cement filed an application to list it on the exchange to allow trading of the note at the secondary market.
The application was filed by the company’s stockbrokers, APT Securities and Funds Limited and Stanbic IBTC Stockbrokers Limited.
Business Post confirmed that on January 28, 2021, the NSE approved the application and with this development, the bond would be tradable on the exchange after its official listing on a date to be announced soon.
In January 2020, BUA Cement officially joined the stock exchange after a merger between Cement Company of Northern Nigeria (CCNN) and Obu Cement.
The marriage was consummated to provide a compelling opportunity to capture significant synergies and create value for the benefit of the shareholders of both companies in the form of a stronger competitive position of the enlarged company, economies of scale, enhanced operations and administrative efficiencies that will accrue.
