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FMDQ admits BUA Cement N115bn bond, largest on debt capital market



FMDQ admits 78 debt securities worth N1.03trn in 2018

FMDQ Securities Exchange Ltd has announced the admission for listing 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 listed company, is the second largest cement producer in Nigeria and the largest cement producer in the North Western region of the country.

Speaking on the significant and successful issuance of the bond, the Chairman, BUA Cement, Abdul Samad Rabiu, was quoted by the statement as saying 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.

Also speaking, the company’s Chief Executive Officer, Mr Yusuf Binji, said “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.

“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,” Binji said.

FMDQ Group is Africa’s first vertically integrated financial market infrastructure group which 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.

Chinyere Joel-nwokeoma

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