Lafarge Africa Plc has concluded its Series I and II N60bn bond issuance, comprising N26,386,000,000 three-year bond at 14.25 per cent, which is due in 2019, and a N33,614,000,000 five-year bond 14.75 per cent due in 2021.
The firm stated that the proceeds of the bond issuance would be used to part refinance the debt of its wholly-owned subsidiary, United Cement Company of Nigeria Limited.
“The dual-series issuance, the first of its kind and largest ever bond issuance by a corporate in Nigeria’s debt capital markets, was concluded following a book build, with the order book oversubscribed. This transaction is Lafarge Africa’s second bond issuance in the Nigerian capital markets, having previously issued a N11.8bn three-year fixed rate bond in 2011,” the company said in a statement.
It stated that a signing ceremony in respect of the Series I and Series II bonds was held on Wednesday last week following the Securities and Exchange Commission’s approval, adding that the bonds would be listed on the FMDQ OTC.
According to the firm, Chapel Hill Denham acted as the lead financial adviser, lead issuing house and lead book runner on the transaction, while Citibank Nigeria acted as the joint lead financial adviser and book runner, with Standard Chartered and Stanbic IBTC as joint issuing houses and book runners.
The Chairman, Lafarge Africa, Bolaji Balogun, was quoted as saying that the bond was the largest ever by a corporate organisation in the country’s capital market, making the firm a prime issuer.
Lafarge Africa’s Group Managing Director, Michel Puchercos, was also quoted as saying that the proceeds would deliver savings in financing costs to Unicem and Lafarge Africa.
“Unicem is currently undergoing a 2.5 million-metric-tonne per annum capacity expansion, which will be completed by the end of 2016,” he stated.
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