Lafarge Cement WAPCO Nigeria Plc is likely to hit the capital market with NGN45bn (US$289m) bond issue to refinance its medium-term loan in the third quarter of 2011, local sources have revealed.
Lafarge Cement WAPCO had obtained NGN45.27bn syndicated multi-currency medium-term loan in 2008 to finance its expansion project called Lakatabu at Ewekoro, Ogun State.
The repayment of the facility is expected to commence in the last quarter of 2011. But in order to mitigate its impact on the profitability of the company, a bond issuance is being planned to refinance the loan facility.
Chairman of Lafarge Cement WAPCO, Chief Olusegun Osunkeye had during the 52nd Annual General Meeting, held recently in Lagos, confirmed the bond issue to shareholders, saying that the details were being finalised.
Source: This Day