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BUA Cement Plc Lists N115Bn Bond on Nigerian Exchange

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BUA Cement stock - Investors King

BUA Cement Plc listed its N115billion 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 on Tuesday, 13 April 2021.

Speaking during the ceremony, the Divisional Head, Listings Business, NGX Limited, Mr. Olumide Bolumole stated, “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. We are, therefore, excited about BUA Cement’s debut bond offering which was oversubscribed by 37% to the tune of N137.82 Billion 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.”

On his part, the CEO, BUA Cement Plc, Engr. Binji commented, “I would like to thank the management of NGX Limited for the invitation to bring trading activities to a close. Today marks another key milestone on our journey to becoming the preferred cement manufacturer in Africa. As part of our growth strategy, we took the deliberate decision to access the debt capital market with the intent to raise N100 Billion in the first tranche of our N200 Billion programme. Given the overwhelming response and in accordance with the Securities and Exchange Commission’s guidelines, we accepted N115 Billion 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.”

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.”

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.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

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Investors Oversubscribed for Access Bank US$500 Million Senior Unsecured Eurobond

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Eurobonds - Investorsking

Access Bank Plc strong financial position has continued to attract global investors to the bank’s financial instruments despite the ongoing global challenges and limitations.

Investors oversubscribed for the bank’s $500 million Senior Unsecured Eurobond issued under Access Bank’s $1.5 billion Global Medium-Term Note Programme. The lender offering received over three times oversubscribed orderbook of over $1.6 billion, the largest orderbook for a Nigerian bank Eurobond.

According to a statement signed by Sunday Ekwochi, the bank’s secretary and seen by Investors King the fund will help enhance the capacity of the Bank to support its general banking process and provide medium term funding for the lender.

The Senior Eurobond is a 5-year unsecured note (144A/RegS) is listed on London Stock Exchange and it will mature in September 2026 with a yield and coupon rate of 6.12 percent. The interest is payable semi-annually in arrears.

Speaking on the success of the Eurobond, Herbert Wigwe, Group Managing Director, said: “At Access Bank we remain committed to our vision to become the World’s Most Respected African Bank and Africa’s Gateway to the World. The success of our USS500 milion Senior Unsecured Eurobond is yet another stride towards the realisation of that vision and underscores our investors confidence in the Access Bank story. We are pleased with the diversity of the order book and the success of this issuance further strengthens our resolve to deliver on our strategic objectives”.

Absa, Barclays Bank, JP Morgan and Standard Chartered acted as Joint Bookrunners on the transaction; and Chapel Hll Denham and Rand Merchant Bank acted as Financial Advisors and Joint Bookrunners.

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Zambia Bonds Rally After Leader Tweets He’ll Pay Creditors

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Zambian President Hakainde Hichilema took to Twitter on Thursday to assure creditors that they’ll be paid, having warned in an interview with Bloomberg this week that the southern African nation’s debt burden is bigger than previously thought. The country’s bonds rallied.

Hichilema, who defeated Edgar Lungu in last month’s election, needs to negotiate new terms with external lenders after Zambia became Africa’s first pandemic-era defaulter 10 months ago. Using the nickname “Bally” — local slang for dad —  the new president said he would pay.

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Nigeria’s Bank of Industry Plans $883M Eurobond Sale

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Bank of Industry

Nigeria’s state-owned Bank of Industry plans to raise as much as 750 million euros ($883 million) from international debt markets this year for lending to companies hampered by the Covid-19 pandemic in Africa’s largest economy.

Financial advisers have been appointed for the issue, Chief Executive Officer Olukayode Pitan, said in a virtual interview without providing details. The lender will raise “anywhere between 500 million to 750 million euros,” he said. The bond proceeds will be deployed to areas of priority including health care, transportation, education, solid minerals and agriculture, he said.

Nigerian firms have faced significant foreign exchange constraints after lower oil prices cut income from crude sales, which account for most of the nation’s dollar earnings in Africa’s most populous country. The bond sales will boost reserves and also increase funding for companies whose businesses have been impacted by the country’s two recent economic contractions in 2016 and 2020.

The bond will be the lender’s fourth international debt deal since 2018 and comes on the back of the Nigerian government’s appointment of financial advisers earlier this month for a planned $6.2 billion Eurobond issuance.

Established in 2001, the development finance institution is about the only lender among local banks that gives loans for up to 10 years at single-digit rates, Pitan said. “The financing gap is a lot,” he said.

Nigerian authorities are encouraging banks to bolster credit to manufacturers and agriculture industries to grow the economy which expanded 0.51 percent in the first quarter.

The Lagos-based development bank also plans to set up as much as $100 million funds to provide credit to startups and information technology companies to enhance their contribution to the nation’s economic recovery, according to the CEO. “It is going to be about $75 million to $100 million being promoted by the Bank of Industry,” he said.

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