Lafarge Cement WAPCO Nigeria Plc has registered a N50 billion Bond Issuance Programme. The Bond Issuance Programme was approved by the Securities and Exchange Commission (SEC) recently.

A statement from Lafarge revealed that the first series of the Bond Issuance Program which will be a 3 year fixed rate bond (2011-2014), is being offered to investors for subscription by way of Book Building . Subscription to the bond is open to qualified Nigerians, International, Institutional and high net worth investors.

According the statement, “ Interest on the bond will be paid half-yearly with a bullet repayment of principal at the end of the third year. The proceeds from this issue will be utilized to re-finance part of the Company’s existing variable interest loan facilities on the Lakatabu Expansion Project.”

Speaking at the Company’s Investors Forum in Lagos and Abuja , the Managing Director and Chief Executive Officer, Mr. Samy Abdelkader said “the bond issuance is part of a planned programme to optimize the medium term debts of the Company and thereby address the volatility inherent in the large proportion of the variable interest loan facilities.

Currently, approximately 75% of the Company’s medium term debts attract floating interest rates”.

In his remarks, the company’s Finance Director, Mr. Fred Amobi, said “the bond will be secured using the existing security structure of the Syndicated Multi-currency Medium Term Facilities and that the Bondholders represented by Trustees will share in the all assets debenture set up by the Company and will rank pari passu with all the existing facility lenders.”

The Series 1 of the Bond Issuance Programme was rated A+ by Agusto & Co and AA- by Global Credit Rating Co. (GCR) on the strength of the Company’s robust security structure, market positioning and future cash flows.

The lead Issuing House for the Bond Issuance Programme is Chapel Hill Advisory Partners Limited. Joint Issuing Houses include Access Bank Plc, Citibank Nigeria Limited, Ecobank Plc, FBN Capital Limited, FCMB Capital Markets Limited, First Securities Discount House Limited, Guaranty Trust Bank Plc., among others.