24th May, 2021
By Chinyere Joel-Nwokeoma
FMDQ Securities Exchange Ltd has announced the listing of the BUA Cement Plc N115 billion series 1 fixed rate senior unsecured bond under its N200 billion bond issuance programme.
The issuance, the first by BUA Cement, becomes the largest corporate bond issued in the Nigerian Debt Capital Market (DCM).
The FMDQ said in a statement on Sunday in Lagos that the bond was approved by the board Listings and Markets Committee of the Exchange.
It said the proceeds from the issuance would be used to refinance existing debt obligations of the issuer, finance the issuer’s working capital as well as fund its debt service reserve account.
BUA Cement, a publicly quoted company, is the second largest cement producer in Nigeria and the largest cement producer in the North Western region of the country.
The Chairman, BUA Cement, Abdul Samad Rabiu, said the bond was 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.
“We remain committed to unlocking opportunities within the industry for Nigeria,” Rabiu said.
The company’s Chief Executive Officer, Mr Yusuf Binji, said “the success of the bond issue underscores the strength of BUA Cement’s brand”.
“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”, Binji added.
FMDQ Group is Africa’s first vertically integrated financial market infrastructure group.
It provides a one-stop platform for the seamless and cost-efficient execution, risk management, clearing, settlement, depository and data and information services for the Nigerian financial market.