Lafarge Africa to float N60b bond as new MD takes over

aLafarge Africa Plc has launched the bid to raise up to N60 billion through a bond issue to refinance its debts and restructure its balance sheet.

Arrangements have been concluded for the bond issue and Lafarge Africa has submitted application for the approval of the bond issue to Securities and Exchange Commission (SEC).

The N60 billion would be raised through second tier bond with short to medium tenors of two, three and five years. The debt capital raising will be through a book building process.

Both Lafarge Africa’s country communications director, Viola Graham-Douglas and head of corporate finance and investor relations, Segun Okunsanwo, confirmed that the company has submitted application to SEC for the bond issue.

The net proceeds of the bond will be used to refinance the third party debts of a subsidiary company, UniCem. It is expected that the book building will commence in May 2016.

Lafarge Africa on Thursday also announced the appointment of Michel Puchercos, a French national, as the its group managing director and chief executive officer. Michel is a graduate of Ecole Polytechnique, and the National School of Rural Engineering, Waterways & Forests, France.

He joined Lafarge as Head, Strategy and Purchasing in Orsan, Lafarge Biochemistry, and in 1998 became Director of Cement Strategy and Information Systems, Lafarge Gypsum. In 2003, Michel became the Director of Cement strategy, Lafarge Group in France.

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In 2005, he moved into cement operations as the CEO for Lafarge operations in Kenya and Uganda while doubling as the Chairman of Tanzania operations. While in this role, he was the Head of African Health as well as Supply Chain Management Committees for East and South-East Africa.

After four years in Sub-Saharan Africa, Michel moved to Asia as the President and CEO of Lafarge South Korea, where he remained for seven years. While in this role, he was also a Special Advisor to the Chairman as well as a Board Member at Aso Cement in Japan.

Commenting on the outlook for the cement group, Puchercos said Lafarge Africa was poised to deliver better performance as its plant operations were stabilizing, with gas utilization accounting for more than four-fifth of operations.

“Overall, our plants are expected to deliver stronger operational results in future quarters of 2016,” Pucheros said.

According to him, in spite of the macroeconomic challenges, the company will continue to deliver good performance with significant upsides to come as it concludes on the integration journey to form Lafarge Africa Plc.

“The new organisation of the company is much stronger and better positioned to deliver operational excellence and improve value to our shareholders,” Puchercos said.

Lafarge Africa said it expects 2016 to be a vibrant year, driven mostly by the individual home segment while it remains confident about the future.

Combining its operations in Nigeria – Ewekoro and Sagamu plants in Ogun State, Ashakacem in Gombe State, Mfamosing in Cross Rivers State, Atlas cement in Rivers State and Ready-Mix Nigeria with its varied operations in South Africa,

Lafarge Africa has a current installed cement capacity of 12 metric tonnes (Mt), which is expected to grow to 17.5 Mt by 2017. This is in addition to strong market leading positions in Aggregates, Ready mix concrete and Fly Ash.

 

 

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