…under its new NGN300bn multi-instrument issuance programme
BY KENNETH O. EZE
Dangote Cement Plc, Africa’s largest cement producer, has announced the successful issuance of 50 billion Series 1 Fixed Rate Senior Unsecured Bonds, under its new NGN300 billion Multi-Instrument Issuance Programme.
Despite market headwinds, the bond issuance was well received and recorded participation from a wide range of investors including domestic pension funds, asset managers, insurance companies and high net-worth investors.
A statement issued by the company’s Deputy Company Secretary, Edward Imoedemhe in Lagos, quoted the Dangote Cement Chief Executive Officer, Michel Puchercos as saying that the proceeds of the bond issuance would be deployed for the company’s expansion projects, short-term debt refinancing and working capital requirements.
The bonds were issued on May 26, 2021 at coupon rates of 11.25 per cent, 12.50 per cent and 13.50 per cent for the 3, 5 and 7-year tranches respectively.
The statement further disclosed that aside from this first issuance of a traditional bond under the new Multi-Instruments Programme, Dangote Cement has registered a programme enabling it to consider different types of fixed income instruments to cater for different type of investors.
Puchercos said that the ability to issue Green Bonds and Sukuk would enable the company leverage the depth and breadth of the Nigerian market.
“This bond issuance allows us move a step further in achieving our expansion objectives and will be deployed to projects instrumental in supporting our export strategy while improving our cost competitiveness.
We thank the investor community for their continued support in the management of Dangote Cement and their successful participation in the bond issuance”, he said.
The Bonds, expected to be listed on the Nigerian Exchange Limited and FMDQ Securities Exchange, the company stated has Absa Capital Markets Nigeria acting as Lead Issuing House for the Series 1 Bonds.
Dangote Cement PLC. has a long-term credit rating of AAA by GCR and Aa2.ng by Moody’s due to its market-leading position, significant operational scale, and strong financial profile evidenced by the company’s robust operating and net profit margins relative to regional and global peers, adequate working capital, good cashflow, and low leverage.
It disclosed that Stanbic IBTC Capital, Standard Chartered Capital & Advisory Nigeria Limited, United Capital Plc, FBN Quest Merchant Bank, FCMB Capital Markets, Coronation Merchant Bank, Ecobank Development Corporation Nigeria, Futureview Financial Services, Meristem Capital Limited, Rand Merchant Bank, Quantum Zenith Capital and Vetiva Capital Management are the Joint Issuing Houses.
Dangote Cement Plc is Sub-Saharan Africa’s largest cement producer with an installed capacity of 48.6Mta capacity across 10 African countries.
It operates a fully integrated “quarry-to-customer” business with activities covering manufacturing, sales and distribution of cement. We have a production capacity of 32.3Mta in our home market, Nigeria.
