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BUA Cement PLC, one of Africa’s largest cement companies, announced that it has successfully completed its $ 115 billion fixed rate senior unsecured bond issue (the “Bond or issue”) As part of its first N200billion bond issuance program. With this development, the BUA Cement Series 1 Bond becomes the largest corporate bond ever issued in the Nigerian debt capital markets and indicates growing investor confidence in Nigeria’s second largest cement company. According to the company, a request for double listing of the Bonds on the relevant stock exchanges will be made upon receipt of the necessary approvals.

BUA Cement’s N100billion Series 1, 7-years issue, priced at a competitive 7.5% fixed rate, was oversubscribed by N137.82 billion at the same time the company announced that it would only use 115 billion naira in accordance with regulatory guidelines.

Speaking on the importance and success of the Series 1 show, Abdul Samad Rabiu, President of BUA Cement, said: “This is the largest corporate bond offering in history. Nigeria’s debt markets. Last year we made a strategic decision as a proudly Nigerian company to list BUA Cement on the Nigerian Stock Exchange. This was in line with our core strategy to continue to seek viable investment and growth opportunities in Nigeria. This bond issue – a first by BUA Cement, demonstrates our confidence in Nigeria’s debt capital markets as well as continued investor confidence in BUA Cement’s business model, our leadership team and long-term strategy , all supported by strong credit ratings. We remain committed to opening up opportunities within the industry for Nigeria. “

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In his comments, Engr. Yusuf Binji, Managing Director of BUA Cement, said that the success of the first round of the BUA Cement bond issuance program underscored the strength of the BUA Cement brand. “The transaction, which is the largest corporate bond issue in the history of Nigeria’s debt financial markets, reiterates the strength and acceptance of the BUA Cement brand and the confidence placed by stakeholders in the strong cash generation capacity, credit profile and strategy of the company well experienced management team. Diversifying and extending the duration of our sources of financing with the inclusion of this bond, at a competitive rate, will further enable us to achieve our strategic objectives and our vision.

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The BUA Cement Series 1 bond, which has a moratorium period of 3 years and must be amortized evenly from year 4, is integrated with a call option, exercisable only after 48 months from the date of ‘program.

In another development, BUA recently announced plans to increase its production capacity to 20 million metric tons per year (mtpa) by 2022. In addition, its last 3 million mtpa plant in Sokoto currently under construction should be ready in 2021.


ISSUANCE HOUSES: StanbicIBTC Capital Limited acted as principal issuer / bookrunner, with UCML Capital Limited and Tiddo Securities Limited, as co-issuers / bookrunner.

SUBSCRIPTION TO ISSUES: The N100 billion Naira 7.5% Series 1 Fixed Rate Bond, due 2027, was subscribed for N137.82 billion; and in accordance with Rule 323 (21) of the SEC Rules and Regulations, 2013, the board approved the absorption of excess funds, not exceeding 15% of the supply of 100 billion naira, which corresponds to 15 billion naira and 115 billion naira in its entirety.

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RATINGS: The Issuer and the Issue were both rated “A” (stable) by Agusto and “AA-” (stable) by DataPro, on the basis of a stable, qualified and experienced management team, strong sector potential, strategic position in the market, low exposure to credit risk, excellent business and liquidity profile.

· SEO: A request will be made for the bond to be double listed on the Nigerian Stock Exchange (the “NSE”) and the FMDQ Stock Exchange (“FMDQ”).


BUA Cement Plc

‘Ladipo Ogunlesi (Investor Relations) +234 1 4610670

[email protected]


BUA Cement Plc is Nigeria’s second-largest cement company and the largest producer in its Northwest, South-South and South-East regions; with a combined installed capacity of 8 million metric tons per year (mtpa) and with plans underway to increase existing capacity to 20 million mtpa by 2022. With its head office in Lagos, Nigeria, BUA Cement operates strategically from Okpella, Edo State and Kalambaina, in Sokoto State.


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