NGX records first listing, admits BUA’s N115 b bond

The Nigerian Exchange (NGX) Limited, the new operating exchange, yesterday, listed the first bond on its platform.

It listed BUA Cement Plc’s ₦115 billion seven-year series 1 fixed rate bond issue.

The listing was commemorated with a digital closing gong ceremony featuring the Chief Executive Officer (CEO), BUA Cement Plc, Yusuf Haliru Binji.

Speaking during the ceremony, the Divisional Head, Listings Business, NGX Limited, 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 per cent 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.”

Binji said: “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 following the Securities and Exchange Commission’s (SEC) guidelines, we accepted N115 billion as the total subscription amount.

For us, this was a 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, Funso Akere stated: “We are extremely delighted to have advised BUA Cement on this landmark transaction where they took advantage of very supportive conditions in the debt capital market to raise long-term funding.”