Final arrangements have been sealed for the issuance of N25 billion in commercial papers from a N60 billion programme by leading cement solutions provider, Lafarge Africa Plc.
Explaining more on the issue during the recent release of its financial results for the third quarter and nine-month period ended September 30, 2017, Chief Executive Officer of the company, Michel Puchercos said the net proceeds of the commercial papers would support short-term working capital needs, after which it will be listed on the FMDQ OTC Exchange. In addition, the already approved N131.65 rights issue will hold in November at N42.50 per share.
Business Hilights recalls that a commercial paper is an unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories and meeting short-term liabilities.
He disclosed that “As part of our strategy to reduce foreign currency debt exposure, and improve financial flexibility, the shareholders and board of Lafarge Africa consented to the issuance of N131.65 billion by way of rights issue at 42.50 per share.
“Five new shares will be issued for every nine shares held at the qualification date, which will be announced in the coming weeks. The Rights Issue is expected to open and close in November 2017.”
Additional details from the released report showed that within the nine-month period, the firm’s operating EBITDA stood at N44.4 billion while sales increased by 39 per cent within the same period.
Puchercos maintained that the company has continued to record significant improvement since the implementation of a turnaround initiative in September 2016 amid harsh operating environment.