BUA Cement lists US$281m 7-Year unsecured bond on Nigerian Exchange

BUA to establish mega cement manufacturing complex in Nigeria

NIGERIABUA Cement Plc, a manufacturer of construction materials, has listed its N115billion (US$281m) 7-Year Series 1 Fixed Rate Senior Unsecured Bond on Nigerian Exchange, making it the first listing in the NGX era.

The listing was commemorated with a digital Closing Gong Ceremony featuring the Chief Executive Officer (CEO), BUA Cement Plc, Engr. Yusuf Haliru Binji.

NGX has reiterated its commitment to providing issuers with a platform that allows them to continue to raise capital even in the toughest of times whilst also facilitating secondary market trading activities.

It would be recalled that The Nigerian Stock Exchange recently completed its demutualisation which led to the creation of Nigerian Exchange Group Plc (‘NGX Group’), as the non-operating holding company with three operating subsidiaries, namely: Nigerian Exchange Limited (NGX), the operating exchange; NGX Regulation Limited (NGX RegCo), the independent regulatory arm of the Exchange; and NGX Real Estate Limited (NGX RelCo), the real estate company.

“In line with its commitment to support Nigeria’s economic growth by providing a liquid, efficient, and multi-asset securities exchange hub, NGX Limited continues to provide a platform that offers investors varied options including Equity, Fixed Income, Exchanged Traded Products (ETPs) and other Funds,” the Divisional Head, Listings Business, NGX Limited, Mr. Olumide Bolumole said.

“We are, therefore, excited about BUA Cement’s debut bond offering which was oversubscribed by 37% to the tune of N137.82 Billion (US$337.16m) and represents the largest amount raised by a corporate issuer in the history of Nigeria’s Debt Capital Market. Without a doubt, this is a testament to the high level of confidence placed on this reputable brand by its investors and the entire market.”

The BUA Cement Plc, Engr. Binji said that it marked another key milestone on our journey to becoming the preferred cement manufacturer in Africa.

“Given the overwhelming response and in accordance with the Securities and Exchange Commission’s guidelines, we accepted N115 Billion (US$281m) as the total subscription amount. For us this was clear assessment of our viable business model, strong financial performance, and the strength of our product offerings,” he said.

Speaking on behalf of the parties to the transaction, the Chief Executive, Stanbic IBTC Capital, Mr. Funso Akere stated, “We are, extremely delighted to have advised BUA Cement Plc on this landmark transaction where they took advantage of very supportive conditions in the debt capital market to raise long term funding.

“On behalf of Stanbic IBTC Capital Limited, Tiddo Securities and Union Capital, we would like to thank BUA Cement for giving us a freehand to guide them and the commitment showed to make the transaction a phenomenal success. We would also like to thank NGX for giving us a platform to list the bonds,” he added.

Other Recent Posts

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.