NGX kicks off with BUA Cement’s N115bn bond listing
The Nigerian Exchange Limited (NGX) commenced formal operation under its new identity on Tuesday, April 13, 2021, with the listing of BUA Cement Plc’s ₦115bn 7-Year Series 1 Fixed Rate Senior Unsecured Bond issue.
The listing was marked with a digital Closing Gong Ceremony by the Chief Executive Officer of BUA Cement Plc, Engr. Yusuf Haliru Binji.
Speaking during the ceremony, the Divisional Head, Listings Business, NGX Limited, Olumide Bolumole said the exchange continues to provide a platform that offers investors varied options including Equity, Fixed Income, Exchanged Traded Products (ETPs) and other Funds.
This, he continued, is “in line with its commitment to support Nigeria’s economic growth by providing a liquid, efficient, and multi-asset securities exchange hub,” expressing happiness about BUA Cement’s debut bond offering.
The bond issuance, he recalled, was oversubscribed by 37% to the tune of N137.82bn, representing “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,” he added further.
Also speaking, Engr. Binji appreciated the management of NGX Limited for the invitation to bring the day’s trading activities to a close, “to mark another 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 N100bn in the first tranche of our N200bn programme.”
However, he continued, “given the overwhelming response, and in accordance with the Securities and Exchange Commission’s guidelines, we accepted N115bn as the total subscription amount.”
For the company, he stressed further, the success of the bond issuance “was clear assessment of our viable business model, strong financial performance, and the strength of our product offerings.”
Speaking on behalf of the various parties to the transaction, the Chief Executive, Stanbic IBTC Capital, Funso Akere expressed extreme delight at advising “BUA Cement Plc on this landmark transaction where they took advantage of very supportive conditions in the debt capital market to raise long term funding.
“On behalf of Stanbic IBTC Capital Limited, Tiddo Securities and Union Capital, we would like to thank BUA Cement for giving us a freehand to guide them and the commitment showed to make the transaction a phenomenal success. We would also like to thank NGX for giving us a platform to list the bonds,” he added.
According to a statement, the NGX reiterated its commitment to providing issuers with a platform that allows them to continue to raise capital even in the toughest of times whilst also facilitating secondary market trading activities.
Recall that The Nigerian Stock Exchange recently completed its demutualisation which led to the creation of Nigerian Exchange Group Plc (‘NGX Group’), as the non-operating holding company with three operating subsidiaries, namely: Nigerian Exchange Limited (NGX), the operating exchange; NGX Regulation Limited (NGX RegCo), the independent regulatory arm of the Exchange; and NGX Real Estate Limited (NGX RelCo), the real estate company.