Dangote Cement Plc which recently released its FY 2017 results, has unveiled plans to raise ₦300 billion through a bond shelf programme. Brian Egan Chief Financial Officer (CFO) of the firm, disclosed this during an investor conference call.
In addition to the proposed Naira bond raise, the company is also considering raising more capital through Eurobonds. The Naira bonds will be raised in tranches of N50 billion.
Purpose of the debt raise
The funds raised will be used for capital projects including the construction of export facilities at Nigeria’s ports. This will enable the firm export much needed raw materials to its other subsidiaries. The company had in July last year, disclosed plans to expand its production capacity from 45 million tonnes to 80 million tonnes per annum.
Dangote Cement currently has operations in Senegal, Sierra Leone, Ghana, Cameroon, South Africa, Zambia, Tanzania, Congo and Ethiopia.
The Dangote Group manages Terminal E of the Apapa ports through a subsidiary Greenview Development Services Limited.
Dangote Cement Plc was incorporated in Nigeria as a public limited liability company on 4th November, 1992 and commenced operations in January 2017 as Obajana Cement Plc. The name was changed on 14th July, 2010 to Dangote Cement Plc.
FY 2017 results show Revenue increased from ₦615 billion in 2016 to ₦805 billion in 2017. Profit before tax went up from ₦189 billion in 2016 to ₦289 billion in 2017. Profit after tax also surged from ₦142 billion in 2016 to ₦204 billion in 2017. The company declared a dividend of ₦8.50 per share.
Dangote Cement is currently trading at ₦260 in today’s trading session on the Nigerian Stock Exchange (NSE), down 1.89%. Year to date, the stock is up 15.22%