N115bn Issue: BUA completes largest corporate bond

BUA Cement Plc, one of Africa’s largest cement companies, has concluded its N115 billion Series 1 Fixed Rate Senior Unsecured Bond Issue under its maiden N200 billion Bond Issuance Programme.

This makes BUA Cement’s Series 1 bond the largest ever corporate bond issued in the Nigerian debt capital markets and signposts growing investor confidence in Nigeria’s second-largest cement company.

According to the company, an application will be made to dual-list the bonds on the relevant exchanges upon receipt of the necessary approvals.

BUA Cement’s N100 billion Series 1, seven-year issue is priced at a competitive fixed rate of 7.5% and was oversubscribed to the tune of N137.82 billion, just as the company announced that it will only utilise N115 billion in line with regulatory guidelines.

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It added that StanbicIBTC Capital Limited acted as Lead Issuing House/Bookrunner, with UCML Capital Limited and Tiddo Securities Limited, as joint issuing houses/bookrunners.

The N100 billion Series 1, seven-year 7.5% Fixed Rate Bond, due in 2027, was subscribed to the tune of N137.82 billion.

In accordance with Rule 323(21) of the SEC Rules and Regulations, 2013, the Board approved the absorption of excess funds, not exceeding 15% of the offer of N100 billion, which translates to N15 billion and N115 billion in its entirety.

In ratings, the Issuer and the Issue were both assigned “A” rating (stable) by Agusto and “AA-” (stable) by DataPro, based on a stable, qualified, and experienced management team, strong industry potential, strategic market position, low exposure to credit risk, excellent business, and liquidity profile.

An application will be made to dual-list the bond on the Nigerian Stock Exchange (NSE) and FMDQ Securities Exchange (FMDQ).

Speaking on the significance and success of the Series 1 Issue, Abdul Samad Rabiu, Chairman, BUA Cement said: “This is the…