17 JUNE 2016-Lafarge Africa plc Thursday announced the conclusion of its Series I and II N60 billion bond issuance. The issuance comprises of a N26, 386,000,000 3-year 14.25 percent Bond due 2019 (the Series I Bond) and a N33,614,000,000 5-year 14.75 percent Bond due 2021 (the Series II Bond).
The proceeds of the bond issuance will be used to part-refinance the debt of its wholly owned subsidiary, United Cement Company of Nigeria Limited (Unicem).
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 N11.8 billion 3-year Fixed Rate Bond in 2011.
A signing ceremony in respect of the Series I and Series II bonds was held on Wednesday, following the Securities and Exchange Commission’s (SEC) approval. The bonds will be listed on FMDQ-OTC.
Chapel Hill Denham acted as Lead Financial Adviser, Lead Issuing House and Lead Book Runner on the transaction. Citibank Nigeria acted as Joint Lead Financial Adviser and Book Runner with Standard Chartered and Stanbic IBTC as Joint Issuing Houses and Book Runners.
Commenting at the signing ceremony, Bolaji Balogun, chairman, Lafarge Africa, said: “This 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.”
Commenting at the closing, Michel Puchercos, Lafarge Africa GMD/CEO, said: “The proceeds of this issue will allow Lafarge Africa Plc part-refinance the debt of its now wholly-owned subsidiary, Unicem. These proceeds will deliver savings in financing costs to Unicem and Lafarge Africa. Unicem is currently undergoing a 2.5mtpa capacity expansion which will be completed by the end of 2016.”
Lafarge Africa is the sixth largest entity listed on the Nigerian Stock Exchange, with 12mtpa of cement capacity. A further 2.5mtpa of capacity will be commissioned by H2 2016.
