Nigerian conglomerate, UAC Plc plans to raise N20 billion through a bond sale to refinance short-term borrowings at its real estate subsidiary, UAC Property Development Corporation (UPDC).
Losses at the subsidiary, UPDC have widened, said the group Chief Executive Officer, Abdul Bello.
UPDC reported last week that its losses widened to N3.05 billion in 2017 from N1.23 billion the previous year.
Bello, who took over as Chief Executive this year, said the company wants to restructure UPDC, which is suffering from a current oversupply in the market coupled with a drop in Nigerians’ purchasing power.
He told analysts recently that the harsh economic conditions were still affecting the housing market and that sales at UPDC fell 20 per cent in 2017.
Mr Bello said, “We would use 2018 to refinance a short-term facility. We intend to have this business restructured.
“We see long-term growth supported by a huge housing deficit,”
UPDC cut its debt to N19.3 billion in 2017, down 15 per cent from the previous year.
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