Lafarge Africa Raises ₦60b in Bond Issues

Lafarge Africa said on Thursday it has raised 60 billion naira ($184 million) by issuing three and five-year bonds through book building.

The local unit of the world's biggest cement maker, LafargeHolcim, issued a three-year bond at 14.25 percent to raise 26.38 billion naira and sold a five-year bond at 14.75 percent to fetch 33.62 billion naira, it said in a statement.

The cement and clinker mixer said in April that it was marketing the bond to refinance some dollar-denominated debt at subsidiary United Company of Nigeria (UNICEM), which it bought a year ago. The refinancing would include a $300 million loan from Lafarge Africa's parent company.

Lafarge Africa has said it wanted to refinance some of its debt to cut interest rates on its domestic loans by about 4 to 5 percentage points. Short-term bank rates have risen in Nigeria as the central bank mopped up naira liquidity to shore up treasury bill yields and try to lure foreign investors into an economy hit by chronic dollar shortages caused by a slump in oil prices.