Lafarge Africa Raises N60billion from Fresh Bond Issuance

Giant cement manufacturer, Lafarge Africa Plc on Thursday, June 16, announced the conclusion of its Series I and II N60 billion Bond Issuance.

It is a three year 14.75 per cent Bond due 2019 ( Series 1 Bond) and N33.614 billion five year 14.75 per cent bond due 2021 (Series 11 Bond). The bonds will be listed on FMDQ-OTC.

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.

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 through book building with the order book oversubscribed.

A signing ceremony in respect of the Series I and Series II Bonds was held on June 15, 2016, following the Securities & Exchange Commission’s approval.

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.

Chairman, Lafarge Africa, Chairman, Mr. Bolaji Balogun, who commented at the signing ceremony, 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.”

Speaking on the conclusion of the bond, Group Managing Director/CEO, Lafarge Africa, Mr. Michel Puchercos said: “The proceeds of this issue will allow Lafarge Africa Plc part-refinance the debt of its now wholly-owned subsidiary, Unicem.