Lafarge Africa Raising Bond To Repay $300m Nigeria Loan | Independent Newspapers Limited
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Lafarge Africa Raising Bond To Repay $300m Nigeria Loan

Posted: Apr 29, 2016 at 3:00 am   /   by   /   comments (0)


Lafarge Africa is marketing a N60 billion ($302 million) bond to refinance some dollar-denominated debt at United Company of Nigeria (UNICEM), which it bought last year, reports Reuters.

Anders Kristiansson, chief finance officer, told analysts on Thursday that there was strong interest for the bond and that book-building was expected to open in the second week of May.

The cement and clinker mixer said it had received approval from Securities and Exchange Commission (SEC) for a N100 billion bond, but will issue N60 billion for five-years.

“We are in the process of restructuring the UNICEM debt. We are in the middle of a road show,” Kristiansson said. “We want to refinance the U.S. dollar borrowings that we have in UNICEM.”

Lafarge Africa acquired control of Nigeria’s third-largest cement manufacturer, UNICEM, last October after it bought a 30 percent stake it did not already own from rival Flour Mills for an undisclosed amount.

It reported first-quarter loss before tax of N2.22 billion on Thursday and said debt at UNICEM rose to N152.4 billion as of the first quarter, compared with N145 billion in the same period of last year.

The local unit of the world’s biggest cement maker, LafargeHolcim, expects to use the proceeds of the N60 billion bond to repay some of UNICEM’s borrowings, including a $300 million loan from the parent company, the CFO said.

Kristiansson said Lafarge Africa was paying an interest rate of between 16 and 18 percent on its domestic loans but was hoping to reduce it by about 4 to 5 percentage points with the bond issue. Final pricing will depend on what investors are willing to pay, he said.