BUA Cement said it had concluded the raising of N115 billion debt from investors through its Series 1 Fixed Rate Senior Unsecured Bond issue under its inaugural N200 billion Bond Issuance Programme.
A request will be made to dual-list the bonds on targeted exchanges once the regulatory go-ahead is obtained, the company said in a statement on Monday.
The N100 billion Series 1 bond, said to be the biggest ever corporate bond in the Nigerian debt and capital markets, has a tenor of 7.5 per cent and was oversubscribed by N137.82 billion but the cement maker said it would only take N115 billion in conformity to the regulation allowing only absorption of the 15% excess.
“Last year, we made a strategic decision as a proudly Nigerian company to list BUA Cement on the Nigerian Stock Exchange.
“This was in line with our core strategy to continue seeking out viable investment and growth opportunities within Nigeria,” Abdul Rabiu, BUA Cement chairman.
“This bond issuance – a first by BUA Cement, demonstrates our confidence in Nigeria’s debt capital markets 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.”
The chief executive of BUA Cement, Yusuf Binji, remarked that the successful completion of the bond offering accentuated the power of the brand and stakeholders’ confidence in the firm’s capacity for robust revenue generation, its credit profile as well as its proficient management.
“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.