BUA Cement Plc smash MTN’s record, Lists Nigeria’s Largest Corporate Bond Worth N115 Billion on FMDQ

BUA cement Group

BUA Cement Plc has announced the historic listing of a N115 billion Series 1 fixed rate bond on the FMDQ platform. The landmark listing is heralded as the largest corporate bond in the Nigerian debt capital markets, surpassing MTN’s N110 billion telco bond earlier issued on the floor of the Nigerian Exchange Group Limited.

According to a notification issued by FMDQ and seen by naijabusiness.com.ng, the milestone listing is part of a N200 billion bond issuance programme on its platform.

Naijabusiness.com.ng understands that FMDQ Exchange had recently announced the admission of series of established corporate bonds and commercial papers on its platform. The list of bonds admitted on its platform in the last one month include; The listing of Flour Mills, NMRC bonds worth N39.9 billion, the admission of FG’s Sukuk bond worth N162.6 billion, among others.

Commenting on the significant and successful issuance of the bond, the Chairman, BUA Cement, Abdul Samad Rabiu said: ‘’This is 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.’’

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On the other hand, the Chief Executive Officer of BUA Cement Plc, Engineer 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.’’

What BUA Cement stands to gain from the listing?

By the virtue of the listing of its bond on FMDQ platform, BUA Cement alongside other securities will be availed global visibility, transparency, governance and continuous information disclosure, amongst other value-added services.

It is pertinent to note that bond has a maturity period of 7 years and will be cleared at 7.50%.The bond issue enjoyed a commendable level of support, as shown by an over-subscription of 38%. BUA Cement Plc is the second largest cement producer in Nigeria with a market capitalization of about N2.514 trillion. The firm recorded a 19.4% surge in its profit after tax in FY 2020, when it reported a PAT figure of N72.3 billion.