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By Chinwendu Obienyi
The FMDQ Securities Exchange Limited has announced the admission of BUA Cement Plc N115.00 billion Series 1 Fixed Rate Senior Unsecured Bond under its N200.00 billion Bond Issuance Programme.
According to the Exchange, this is a remarkable feat that once again validates innovative and credible capital market solutions, championed, and efficiently delivered by the FMDQ.
This issuance, a first by BUA Cement Plc, becomes the largest corporate bond issued in the Nigerian debt capital markets (DCM) and the proceeds from the issue will be used to refinance existing debt obligations of the issuer, finance its working capital as well as fund its Debt Service Reserve Account.
The BUA Cement Bond, like all other securities listed and traded on the FMDQ Exchange platform, shall be availed global visibility through FMDQ Exchange’s website and systems, transparency through its inclusion in the FMDQ Daily Quotations List, governance and continuous information disclosure to protect investor interest, and credible price formation, among other benefits derived from its preferred admission on the FMDQ Exchange platform. The BUA Cement Bond, also lodged on FMDQ Depository, will be availed efficient and seamless issue admittance and distribution, accurate record-keeping platform, as well as efficient value chain linkages guaranteed by FMDQ’s vertically integrated structure (Exchange, Clearing & Depository), among other value-added services.
Speaking on the significant and successful issuance of the bond, the Chairman, BUA Cement, Abdul Samad Rabiu, noted that the cement company in 2020, made a strategic decision as a proudly Nigerian company to list shares of BUA Cement, adding that it was in line with the company’s 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…”
