Dangote Cement Plc, Africa’s largest cement producer, has announced the successful issuance of a N50 billion Series 1 Fixed Rate Senior Unsecured Bonds.
According to an official disclosure sent to the Nigerian Exchange Group Limited, the recent issuance is part of the company’s N300 billion Multi-Instrument Issuance Programme. The bonds were issued on 26th of May, 2021 at coupon rates of 11.25%, 12.50% and 13.50% respectively for the 3,5, and 7 year tranches respectively.
The firm noted that the proceeds from the bond issuance will be used to further expand the company and meet its short-term debt refinancing and working capital requirements. It is worthy to note that a range of investors like pension funds, asset managers, insurance companies and high net-worth individuals, participated actively in the bond issuance.
Additionally, Dangote Cement revealed that it has registered a programme that will enable it consider different types of fixed income instruments that will serve the needs of different type of investors.
Commenting on the successful issuance of the Series 1 bond, the Chief Executive Officer of Dangote Cement, Michel Puchercos, said : ‘’ 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.’’
What you should know:
Dangote Cement Plc is the largest cement producing firm in Africa’s 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.
Absa Capital Markets, Nigeria acted as Lead Issuing House for the Series 1 Bonds. On the other hand, 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.
The Bond will be listed on both the Nigerian Exchange Group Limited and FMDQ Securities Exchange.