FMDQ Securities Exchange Limited says it has admitted BUA Cement Plc’s N115 billion series 1 fixed rate senior unsecured bond under its N200 billion bond issuance programme, for listing on its platform.
Proceeds from the issuance will be used to refinance existing debt obligations, finance the issuer’s working capital as well as fund its debt service reserve account.
Speaking on the significance of the bond, the Chairman, BUA Cement, Abdul Samad Rabiu, said: “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. ”
According to him, the issuance was in line with the company’s core strategy to continue seeking viable investment and growth opportunities within Nigeria.
“This bond issuance, a first by BUA Cement, demonstrates our confidence in the Nigerian DCM as well as continued investor confidence in BUA Cement’s business model, management team and long-term strategy, all supported by strong credit ratings.”
The Chief Executive Officer of the company, Yusuf Binji, said the success of the bond underscores the strength of BUA Cement’s brand.
He noted that the transaction reiterates the strength and acceptance of BUA Cement’s brand and the trust by stakeholders in the company’s strong cash generation capacity, credit profile and strategy driven by a well-experienced management team.
Binji explained that diversifying and extending the duration of its funding sources with the inclusion of the bond, at a competitive rate, will further enable the company to achieve its strategic objectives and vision.
“We also have confidence in FMDQ Exchange, hence our decision to list the bond on the exchange. BUA Cement is profoundly grateful to the entire transaction parties, the bondholders and the regulators, who have made this a reality today.”
Head, DCM, Stanbic IBTC Capital Limited, sponsor of the bond on FMDQ Exchange and registration member (Listing) Tokunbo Aturamu expressed delight at the successful issuance and listing of BUA Cement bond.
He noted that this is the largest bond issued by a corporate issuer in the history of the Nigerian capital markets and thanked the investor community for their support of the bond issue evidenced by an over-subscription level of 38 per cent.
BUA Cement, a publicly listed company, is the second-largest cement producer in Nigeria.