- FMDQ admits Dangote Cement Plc’s N44.00 billion Series 4 and N46.00 billion Series 5 Commercial Papers (CPs) under its N150.00 billion CP Programme. The proceeds from the Dangote Cement Series 4 and 5 CPs will be used to fund expansion projects, refinance short-term debts, and work capital expenditures.
- Dangote Cement Plc announced in 2021 the establishment of a new N150 billion commercial paper Programme.
FMDQ Securities Exchange Limited (FMDQ Exchange) has approved the quotation of the Dangote Cement Plc N44.00 billion Series 4 and N46.00 billion Series 5 Commercial Papers (CPs) under its N150.00 billion CP Programme on its platform.
This is contained in a statement from FMDQ and made available to Nairametrics.
FMDQ noted that to guarantee sustained business operations in the current challenging economic environment, corporate institutions have continued to explore alternative financing options by tapping the debt capital market to plug capital shortfalls.
Dangote Cement PLC is one of Africa’s largest cement producers, with a production capacity of 51.6 million tonnes per year across ten (10) countries.
Funds for expansion projects
The proceeds from the Dangote Cement Series 4 and 5 CPs, which are sponsored by Stanbic IBTC Capital Limited (Lead Sponsor), ARM Securities Limited, FSDH Capital Limited, and Quantum Zenith Capital & Investments Limited (Co-Sponsors) – all Registration Member (Quotations) will be used to fund expansion projects, refinance short-term debts, as well as working capital expenditure.
Dangote Cement is Sub-Saharan Africa’s leading cement producer, with a combined capacity of 51.55Mta (35.25Mta in Nigeria) across its operations in 10 African countries.
It operates a fully integrated quarry-to-customer business with activities covering manufacturing, sales, and distribution of cement.
Through its investments, the company eliminated Nigeria’s dependence on imported cement and transformed the nation into an exporter of cement, serving neighboring countries.
What you must know
Dangote Cement Plc announced in 2021 the establishment of a new N150 billion commercial paper Programme.
Deputy Company Secretary, Edward Imoedemhe disclosed this in a statement sent to the Nigerian Exchange Limited, NGX, noting that the programme allowed the Company to broaden its funding sources and, combined with its N300 billion multi-instrument issuance Bond programme, increases access to capital market funding.
- According to the statement: ” The Commercial Paper will be used for working capital and general corporate purposes.”
- Commenting on the bond issuance, Michel Puchercos, Chief Executive Officer of Dangote Cement Plc, said: “The establishment of a new N150 billion Commercial Paper confirms Dangote Cement Plc’s ambition to maintain its long and successful track record of accessing the Nigerian debt capital market. Dangote Cement has issued an aggregate of N450 billion in Commercial Papers since 2018. I want to thank our stakeholders and investors who contributed to the success of all the previous issuances of the commercial paper programme.We look forward to the same warm reception as we engage with fixed-income investors under this new programme.”
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