The FMDQ Exchange has admitted Dangote Cement Plc Series 1 Bond on its platform. The exchange approved the listing of the Dangote Cement Plc ₦3.64 billion Series 1 (Tranche A), ₦10.45 billion Series 1 (Tranche B) and ₦35.91 billion Series 1 (Tranche C) Fixed Rate Bonds under its ₦300.00 billion Multi-Instrument Issuance Program on its platform.
This comes shortly after the successful registration of the Dangote Cement ₦100.00 billion Commercial Paper Program within the same period which allows the Issuer to raise funds through the issuance of various medium-to-long-term debt securities such as the green bonds, sukuk etc.
According to the disclosure, the proceeds from the Dangote Cement Plc Series 1 Tranche 1-3 bonds will be used to fund expansion projects, refinance short-term debts, as well as working capital expenditure. The Group Managing Director, Dangote Cement, Mr Michel Puchercos, commented on the successful bond issuance.
“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 Chief Executive Officer, Absa Capital Markets Nigeria Limited, the sponsor of the Bond and a Registration Member (Listings) of FMDQ Exchange, Mr Sadiq Abu commenting on the listing said:
“We are very pleased to have acted as Lead Issuing House on the transaction. The success of the issuance and positive investor response amidst market uncertainty is indicative of Dangote Cement’s strong credit profile and market positioning. We thank the Board and Management of Dangote Cement PLC for the opportunity to continue to support the Company in its fund-raising efforts.”
Recall that, in June 2021, Dangote Cement Plc announced the successful issuance of its N50 billion Series 1 fixed rate senior unsecured bonds under its new N300 billion multi-instrument issuance programme.
According to a statement by the company, the bond recorded participation from a wide range of investors including domestic pension funds, asset managers, insurance companies and high net-worth investors despite market headwinds.
The company explained that the proceeds of the bond would be deployed for the company’s expansion projects, short-term debt refinancing and working capital requirements.