Lafarge Wapco Cement Nigeria Plc is targeting a turnover of N18.65 billion during the forth quarter ending December 31, 2011.
The company also forecasts a profit after tax of N1.02 billion during the last quarter of the year.
Lafarge had recorded a marginal profit after tax of N5.77 billion during the third quarter ended September 30, 2011 compared with profit of N5.688 billion in 2010, representing a marginal growth of 1.3 per cent.
The unaudited result for the third quarter showed a turnover of N44.55 billion as against N33.05 billion in the comparable period of 2010 while the Net Asset Value stood at N53.31 billion compared with N48.29 billion recorded in the comparable period.
Lafarge had registered a N50 billion Bond Issuance Programme. The bond Issuance Programme was approved by the Securities and Exchange Commission (SEC) on September 16, 2011.
The first series of the Bond Issuance Programme which will be a three-year fixed rate bond (2011-2014), is being offered to investors for subscription by way of Book Build. Subscription to the bond is open to qualified Nigerians, international, institutional and high net worth investors.
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 utilised 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, 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 per cent 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 along with all the existing facility lenders”.