FMDQ Securities Exchange Limited, at the weekend, announced the listing of the BUA Cement Plc ₦115bn Series 1 Fixed Rate Senior Unsecured Bond, a first by the issuer, under its ₦200bn Bond Issuance Programme.
The 7.50% seven-year Fixed Rate Series 1 Bond, achieved an over-subscription level of 38.00%, following an “overwhelming support” for the bond issue and BUA Cement Plc by the investor community.
Proceeds from the issuance, which becomes the largest corporate bond issued in the Nigerian debt capital markets, according to a statement by the exchange, will go into refinancing existing debt obligations of BUA Cement Plc, as well as finance its working capital, besides funding a Debt Service Reserve Account.
Speaking on the successful bond issuance of the Bond, the Chairman, BUA Cement, Abdul Samad Rabiu, recalled that “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 maiden bond issue, he assured, “demonstrates our confidence in the Nigerian Debt Capital Market, 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.”
Rabiu also restated the group’s commitment “to unlocking opportunities within the industry for Nigeria”.
For the Chief Executive Officer, BUA Cement Plc, Engineer Yusuf Binji, “the success of the bond issue underscores the strength of BUA Cement’s brand. The transaction, being the largest corporate bond issuance in the history of Nigeria’s DCM, reiterates the strength and acceptance of BUA Cement’s brand and the trust placed by stakeholders in the company’s strong cash generation capacity, credit profile and strategy driven by a well experienced management team.
“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.”
The issuance, he assured further, is equally an expression of “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 become a reality today.”
The Head, Debt Capital Markets, Stanbic IBTC Capital Limited, sponsor of the bond on FMDQ Exchange and Registration Member (Listing) of the Exchange, Tokunbo Aturamu, commended BUA Cement for embracing the DCM as a complementary source of raising financing.
He expressed appreciation to the board and management of BUA Cement for the opportunity afforded Stanbic IBTC Capital to act as the Lead Issuing House to the landmark bond issue, just as he commended the other Issuing Houses, UCML Capital Limited and Tiddo Securities Limited, for the important role they played in the success of the bond issue.
