Lafarge Africa concludes N60 billion bond issuance
To deploy proceed into Unicem debt refinancing
Lafarge Africa Plc has announced the conclusion of its series one and II N60 billion bond issuance.
The issue comprises of N26, 386,000,000 three year 14.25 per cent bond due 2019 (“the Series one bond”) and a N33, 614,000,000 five year 14.75 per cent bond due 2021 (“the series II bond”).
According to a statement by the company, the proceeds of the bond issue, according to the company, will be used to part-refinance the debt of its wholly owned subsidiary, United Cement Company of Nigeria Limited (“Unicem”).
The company explained that the dual-series issuance, the first of its kind and largest bond issuance by a corporate in Nigeria’s debt capital markets, was concluded, following a book build, with the order being oversubscribed.
It noted that the transaction was Lafarge Africa’s second bond issuance in the Nigerian capital markets, having previously issued a N11.8 billion three year fixed rate bond in 2011.
The company added that the bonds would be listed on FMDQ-OTC while Chapel Hill Denham acted as Lead Financial Adviser, Lead Issuing House and Lead Book Runner on the transaction while Citibank Nigeria acted as Joint Lead Financial Adviser and Book Runner with Standard Chartered and Stanbic IBTC as Joint Issuing Houses and Book Runners.
Speaking at the signing ceremony, the Chairman of the company, Bolaji Balogun said the bond was the largest ever bond issuance by a corporate in Nigeria’s capital markets, affirms Lafarge Africa’s reputation as a prime issuer.
“We are grateful for the overwhelming support we have received from domestic institutional investors, especially the Nigerian pension funds. We also wish to thank the SEC for its support on the completion of the transaction.”
Also commenting on the bond issue, Lafarge Africa Group Managing Director, Michel Puchercos noted that the proceeds of the issue would allow Lafarge Africa Plc part-refinance the debt of its wholly owned subsidiary, Unicem.