Dangote Cement Issues N50bn Bonds For Expansion Projects, Others

Dangote Cement Plc, Africa’s largest cement producer, has announced the successful issuance of N50 billion Series 1 Fixed Rate Senior Unsecured Bonds under the company’s new N300 billion Multi-Instrument Issuance Programme. The company said on Wednesday that 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 three-, five- and seven-year tranches respectively.

It said 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

Dangote Cement said the proceeds of the bond issuance would be deployed for the company’s expansion projects, short-term debt refinancing and working capital requirements.

It said aside from this first issuance of a traditional bond under the new multi-instruments programme, it had registered a programme enabling it to consider different types of fixed income instruments to cater for different type of investors.

The company said the ability to issue green bonds and Sukuk would enable the company leverage the depth and breadth of the Nigerian market.

The Chief Executive Officer, Dangote Cement, Michel Puchercos, “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

The company said Absa Capital Markets Nigeria acted as lead issuing house for the Series 1 bonds, and 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 acted as joint issuing houses.

It said the bonds would be listed on the Nigerian Exchange Limited and FMDQ Securities Exchange.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.