Agusto & Co. hereby affirms the “A+” rating assigned to BUA Cement Plc’s ₦115 billion Bond
The rating expires on 31 December 2023.
Agusto & Co. hereby affirms the “A+” rating assigned to BUA Cement Plc’s (“BUA Cement”, “BCP”, “the Issuer” or “the Company”) ₦115 billion 7.5% Seven-Year Senior Unsecured Fixed Rate Bond Due 2027 (“Series 1”, “the Issue” or “the Bond”) under the ₦200 Billion Debt Issuance Programme. The Issue rating mirrors the standalone rating of the Issuer (BUA Cement Plc, rated “A+” by Agusto & Co, expiring 30 June 2023) as the Bond ranks equally with other senior debts of the Company and the repayment of the Series 1 Bond obligations are fully backed by the Issuer’s operating cash flow.
In December 2020, BUA Cement Plc issued its maiden ₦115 billion 7.5% Seven-Year Senior Unsecured Fixed Rate Bond Due 2027 under the ₦200 Billion Debt Issuance Programme. The Series 1 Bond is a senior, direct, unsecured debt and ranks pari passu with other senior debts of the Issuer. The proceeds of the Bond were utilised for the repayment of shareholder loans obtained for the construction of the 3 million metric tonnes Kalambiana Cement Plant (Line 3), which was commissioned in January 2022, as well as to meet working capital requirements.
The opinions expressed in this rating release do not represent investment or other advice and should therefore not be construed as such. Visit www.agusto.com for further information.