FMDQ Exchange lists BUA Cement’s N115bn bond
FMDQ Securities Exchange Limited has announced the admission of the BUA Cement Plc N115bn Series 1 Fixed Rate Senior Unsecured Bond under its N200bn Bond Issuance Programme, for listing on its platform, as approved by the Board Listings and Markets Committee of the Exchange.
The Exchange described the issuance as the first by BAU Cement and the largest corporate bond issued in the Nigerian debt capital markets.
It said in a statement that the proceeds from the issuance would be used to refinance existing debt obligations of the issuer, finance its working capital as well as fund its Debt Service Reserve Account.
The Chairman, BUA Cement, Abdul Samad Rabiu, was quoted as saying, “This is the largest corporate bond issue in the history of Nigeria’s DCM. In 2020, we made a strategic decision as a proudly Nigerian company to list the shares of BUA Cement. This was in line with our core strategy to continue seeking out viable investment and growth opportunities within Nigeria.
“This bond issue – a first by BUA Cement, demonstrates our confidence in the Nigerian DCM as well as continued investor confidence in BUA Cement’s business model, our management team, and long-term strategy, all supported by strong credit ratings.”
He said the company remained committed to unlocking opportunities within the industry for Nigeria.
The Chief Executive Officer, BUA Cement, Yusuf Binji, said the success of the bond issue underscored the strength of BUA Cement’s brand.
Stanbic IBTC Capital Limited, the sponsor of the bond on FMDQ Exchange, said the bond was over-subscribed by 38 per cent.
Source: ThePunch, May 24, 2021