The Nigerian Stock Exchange, NSE, has approved for listing, Lafarge Africa Plc‘s three and five year capital raising bond of N26.4 billion and N33.6 billion respectively which amount to N60 billion.
According to the bourse, the cement manufacturer, through a three year fixed rate bond due 2019, will raise N26,386,000,000 in its first series of a N100 Billion Debt Issuance Programme with Pilot Securities as the stockbrokers.
Lafarge will also offer for Subscription N33,614,000,000 in Series II of a five year Fixed Rate Bond Due 2021 under a N100 Billion Debt Issuance Programme with Chapel Hill Advisory Partners Limited; Standard Chartered Capital and Advisory Nigeria Limited and Stanbic IBTC Capital Limited as the issuing houses and financial advisers for both debt programmes .
Group Managing Director/CEO, Lafarge Africa, Mr. Michel Puchercos who spoke on the Lafarge’s outlook for the remaining part of the year had mentioned that the company is looking to refinance third party USD denominated loans of 85 million USD by end of fourth quarter (Q4).
According to him, the company expects pricing to remain robust during Q4 with significant recovery in Q4 vs Q3 2016 and operating EBITDA around 30 percent, Worldstage reports.
“Our focus on volume and prices started to deliver during the 3rd Quarter. In September, all our plants were running at record performance level, Mfamosing Line 2 started its operation on August 28th (clinker) and prices increased by 650N/bag in September representing above 40 percent price change,” he said.
“In spite of the recessionary economic environment and market uncertainties, our company is positioned to deliver improved performance going forward. Our immediate objective is to optimise our processes, reduce operational costs and deliver strong EBITDA margins.”
Puchercos said uncertainty remains on the macroeconomic environment and its effect on the cement market.
