Rating Release

Agusto & Co. hereby affirms the “A+” rating assigned to BUA Cement PLC’s ₦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 rating expires on 31 December 2026. 

Agusto & Co. hereby affirms the “A+” rating assigned to BUA Cement PLC’s ₦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 assigned to BUA Cement PLC (“BUA Cement”, “BCP”, “the Issuer” or “the Company”), given that its operating cash flows have been irrevocably and unconditionally pledged as the primary source of repaying the Series 1 Bond obligations. The rating reflects BUA Cement’s good profitability and cash flows, supported by sustained demand for cement from ongoing public infrastructure and real estate developments, as well as its established market position, expanded production capacity and strong pricing power. The rating is also supported by the Issuer’s adequate working capital and liquidity positions, upheld by evergreen spontaneous financing sources arising from its favourable trade terms with customers and suppliers. However, the rating is moderated by the Company’s vulnerability to currency risk stemming from the remaining portion of the $300 million syndicated loan obtained from the International Finance Corporation, which could constrain funding flexibility in the event of a material local currency depreciation.