FMDQ lists BUA Cement’s N115bn bond — largest issued on debt market

FMDQ Securities Exchange Limited has announced the admission of BUA Cement Plc N115 billion series 1 fixed rate senior unsecured bond under its maiden N200 billion bond issuance programme.

In a statement on Sunday, FMDQ said the bond was approved by the board listings and markets committee of the exchange.

BUA Cement’s series 1 bond becomes the largest ever corporate bond issued in the Nigerian debt capital markets.

FMDQ 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.

Speaking on the series 1 issue, Abdul Samad Rabiu, chairman of BUA Cement, said: “This bond issue – a first by BUA Cement, demonstrates our confidence in the Nigerian debt capital markets 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”.

Also speaking on the development, Yusuf Binji, BUA Cement chief executive officer, said: “The transaction, being the largest corporate bond issuance in the history of Nigeria’s debt capital markets, 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.

“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 become a reality today”.

The cement firm announced in January 2021 that it had successfully concluded its N115 billion 7-year rate series 1 bond.

On April 13, 2021, Nigerian Exchange Limited (NGX) listed BUA Cement’s bond, the firm had said the bond issuance was oversubscribed by 37 percent to the tune of N137.82 billion.