UPDATE 1-Nigeria's BUA Cement eyes bond sale for expansion

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By Chijioke Ohuocha
ABUJA, May 6 (Reuters) - Nigeria's third biggest cement firm
BUA Cement BUACEMENT.LG plans to sell a second tranche of
bonds under its 200 billion naira programme to finance
expansion, its chief executive said on Thursday.
Yusuf Binji said BUA issued a first tranche of 115 billion
naira worth of bonds in 2020. He did not give a time for the
future sale and said the amount of the issue would depend on its
funding needs.
The bond plan comes after MTN Nigeria MTNN.LG , local unit
of South Africa's telecoms group MTN MTNJ.J on Thursday said
it has issued a 110 billion naira bond.
Yields in Nigeria are at historic lows after the central
bank cut rates twice last year to lower borrowing costs for the
government, creating opportunities for firms to sell debt at
more attractive rates.
BUA plans to expand capacity to 20 million tonnes from 11
million with the addition of new lines across three mostly
northern states in Nigeria.
The cement firm said it will commission a 3 million tonne
production line by the end of this year to add to its existing
two million tonne plant in Nigeria's northwestern state of
Sokoto.
The company is also targeting exports especially with the
start of the Africa free trade area.
"We only export our excess capacity if the Nigerian market
is not able to take up what we are producing," Binji told an
analyst call.
"Demand has been extremely strong in the last one year ...
we will resume when the opportunity arises," he said, adding
exports were below 1% of production.