Connect with us

Bonds

BUA Cement Plc Lists N115Bn Bond on Nigerian Exchange

Published

on

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.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

Continue Reading
Comments

Bonds

Coinbase Unveils $1 Billion Convertible Bond Plan to Fuel Growth

Published

on

Coinbase - Investors King

Coinbase Global, Inc., the renowned cryptocurrency exchange platform, has announced its strategic move to bolster its financial position by initiating a private sale of $1 billion in convertible senior notes.

The bonds, set to mature in 2030, come with an additional provision allowing initial buyers to acquire an extra $150 million to address potential over-allotments.

This ambitious plan, aimed at fortifying Coinbase’s financial foundation, underscores the company’s commitment to fostering growth and expansion in the ever-evolving cryptocurrency landscape.

The proceeds from the convertible bond issuance are earmarked for “working capital and capital expenditures,” reflecting Coinbase’s strategic vision to drive innovation and enhance its market presence.

Convertible bonds offer a unique avenue for Coinbase to raise capital, providing investors with the flexibility to convert their holdings into company stock.

This approach not only diversifies Coinbase’s funding sources but also potentially reduces interest costs compared to traditional debt financing methods.

The decision to opt for convertible bonds aligns with Coinbase’s strategy to navigate market dynamics effectively while maximizing shareholder value.

Amidst recent operational challenges, including glitches during bitcoin’s price surges, Coinbase remains steadfast in its pursuit of growth opportunities.

Coinbase’s move to secure $1 billion through convertible bonds underscores its confidence in the long-term prospects of the cryptocurrency industry.

As the company continues to innovate and adapt to market trends, investors are poised to witness Coinbase’s strategic vision translate into sustained growth and value creation in the dynamic world of digital assets.

Continue Reading

Bonds

Nigeria Taps Citibank, JPMorgan, Goldman Sachs for Eurobond Issue

Published

on

Bonds- Investors King

Nigeria has taken a significant step towards its first eurobond issue since 2022 by enlisting the expertise of top-tier investment banks, including Citibank NA, JPMorgan Chase & Co., and Goldman Sachs Group Inc.

Sources familiar with the matter disclosed that the eurobond offer, anticipated before June, is yet to have its size determined.

The decision to tap into international debt markets underscores Nigeria’s quest to secure external funding to meet its expenditure requirements amidst fiscal needs.

With Africa’s largest oil producer potentially eyeing up to $1 billion in external borrowing this year, the move aligns with President Bola Tinubu’s approved spending plan of 28.8 trillion naira ($18 billion) for 2024.

Amidst Nigeria’s ambitious fiscal targets, including a budget deficit of 9.8 trillion naira, equivalent to 3.8% of gross domestic product (GDP), external borrowings remain a vital component for financing infrastructure projects and stimulating economic growth.

The engagement of renowned investment banks reflects Nigeria’s efforts to instill confidence among foreign investors and attract capital inflows.

Since assuming office in May, President Bola Tinubu has spearheaded a series of reforms aimed at revitalizing the economy, including currency devaluation and subsidy removals.

In addition to Citibank, JPMorgan, and Goldman Sachs, Standard Chartered Bank and Lagos-based Chapel Hill Denham have been engaged as advisers by the Nigerian government.

This strategic move signals Nigeria’s determination to leverage global financial expertise in navigating its fiscal landscape and tapping into international capital markets to bolster economic development.

Continue Reading

Bonds

Federal Government Falls Short: Raises N1.5tn at February Bond Auction

Published

on

Bonds- Investors King

The Federal Government’s February bond auction fell short of its target as it raised N1.5 trillion instead of the planned N2.5 trillion.

The Debt Management Office (DMO) announced this shortfall in a press release on Tuesday. The auction included bonds maturing in 2031 and 2034, with a combined offering of N2.5 trillion.

Despite the lower-than-expected outcome, the DMO highlighted significant investor interest with total bids reaching N1.9 trillion, the highest recorded in any single FGN Securities Auction.

The 2031 bond received allotments totaling N873.53 billion, while the 2034 bond saw allotments amounting to N621.38 billion, making for a total allotment of N1.495 trillion.

The government’s decision to raise funds through bonds reflects its ongoing efforts to meet financing needs and attract both local and foreign investors.

However, the shortfall indicates a potential mismatch between the government’s funding requirements and investor appetite.

While the auction outcome signifies continued investor confidence in Nigerian securities, it also underscores the importance of closely monitoring government borrowing and fiscal management strategies to ensure sustainable debt levels and investor trust in the market.

Continue Reading
Advertisement




Advertisement
Advertisement
Advertisement

Trending