Lafarge Africa notifies NSE of N100bn bond issue

Lafarge Africa notifies NSE of N100bn bond issue
Oladejo Amos
Lafarge Africa has said that the company is in the process of finanlising the issuance of N100 billion bond.
The company in a notice to the Nigerian Stock Exchange yesterday said that further  to  an application  submitted  to  the  Securities and  Exchange  Commission, SEC, on May 27, 2016, the commission has confirmed the  commencement  of  the Book Build.
“The Company is in the process of finalizing the issuance of the Series I and Series II Bonds, following which the transaction  documents will   be updated   and   submitted   for   clearance   by   the   SEC. The signing ceremony will hold once the SEC ‘No Objection’ is obtained.
“Additional information will be provided once the allotment of the Series I and Series II Bonds is finalize,” the company added.
Meanwhile, the company results for the year ended December 31, 2015, showed two per cent growth in revenue against last year’s reaching N267 billion.
The company said revenues from its South African operation grew by seven per cent in the last quarter of the year under review.
Also, its South West operations grew by eight per cent behind a number of initiatives such as the Key Distribution Scheme, a strong route to market and solid capacity utilisation.
Giving further details about its performance, the company stated that Ready Mix Nigeria, a strategy it introduced recently, continued its strong growth with a 29 per cent increase over prior year.
“The Ashaka operations were normalised, following the security challenges in the region, which affected demand for cement in the North. The management remains very optimistic about the long term outlook for Ashaka, which is foreseen to return to strong growth in 2016.
“The plant operations were mostly stable with gas utilisation in the 90s in South West and Mfamosing operations. The South African cement operations returned to growth in Q4 with production up by 28 per cent vs. last year, following the kiln overhauls in Q1 2015, “it stated.
The Nigerian operations of Lafarge Africa have been successfully unified and rationalised under one management team while being cognisant of the different stakeholders.