Dangote Cement Plc has officially launched its N100 billion Commercial Paper (CP) offer, marking the first tranche under its broader N500 billion Commercial Paper Issuance Programme.
The offer, which opened on Monday, 17 November 2025, is set to close on Wednesday, 19 November 2025.
The CPs are available in two tranches:
- 181-day Series 1 with a 16.10% discount rate, implying a 17.50% yield.
- 265-day Series 2 with a 16.70% discount rate, implying a 19.00% yield.
The minimum subscription for the offer is N50 million, with additional subscriptions in multiples of N1,000.
Proceeds from the CP will be directed towards working capital needs, according to the company’s pricing documents.
What you need to know:
Dangote Cement has consistently demonstrated robust financial performance, positioning itself as one of Nigeria’s most stable and profitable companies.
Over the last five years, the company’s revenue has surged from N1.03 trillion in 2020 to N3.58 trillion in 2024, reflecting an impressive annual growth rate of 37%.
This growth has been accompanied by a steady increase in profit after tax (PAT), which more than doubled from N276 billion in 2020 to N503.25 billion in 2024, reflecting a CAGR of 16.2%.
For the nine months ending September 2025, Dangote Cement’s financial performance remains equally impressive:
- N3.15 trillion revenue, up 22% from N2.56 trillion in the same period of 2024.
- N1.04 trillion profit before tax, a 150% increase from N406.4 billion.
- N743.3 billion profit after tax, more than double last year’s N279.1 billion.
- Operating cash flows jumped to N1.29 trillion, up from N532 billion in 9M 2024.
- Debt reduction of 47%, with borrowings falling to N1.32 trillion from N2.5 trillion in December 2024.
- Interest coverage ratio improved to 4.4 in 9M 2025 from 3.3 in 9M 2024 demonstrating stronger capacity to service debt.
Despite these strong results, the company did face a decline in production volume in 9M 2025, indicating that pricing rather than volume growth was a key driver of performance; a potential risk moving forward.
Rating strengths & risks: What Agencies are saying
Recent assessments from leading rating agencies have reaffirmed Dangote Cement’s dominant position in the cement industry while noting some risks.
DataPro reaffirmed the company’s AA long-term and A1 short-term ratings, citing Dangote Cement’s strong brand, solid earnings track record, and experienced management.
- However, low asset utilization, foreign-exchange exposure, and challenges in some Pan-African markets were flagged as risks.
GCR Ratings downgraded Dangote Cement to A+(NG) from AA+(NG) in October 2025, not due to weakened performance, but because of the group-cap effect tied to its parent company, Dangote Industries Limited.
- However, GCR acknowledged the company’s strong cash flows and solid earnings, expecting leverage metrics to improve by the end of 2025.
Investor takeaway:
Dangote Cement’s strong financial track record and improving leverage make its N100 billion Commercial Paper (CP) offer a compelling investment.
- With N3.15 trillion in revenue and a 150% increase in profit, Dangote Cement shows it can grow even in tough markets. This means steady returns for investors.
- The company’s N1.29 trillion operating cash flow in 9M 2025 confirms it can handle its debt obligations, making the CP offer secure.
- Borrowings down by 47% and a debt-to-equity ratio of 0.54 show improved financial stability, which reassures investors.
- Attractive Yields: With yields of 17.5% to 19%, the CP offers competitive returns for short-term investors.
Risks to watch:
- The drop in production volume may signal pricing pressure over volume growth, which could affect future profitability.
- Exposure to foreign exchange fluctuations and regional instability could affect Pan-African operations.
Bottom line:
Despite the risks, Dangote Cement’s strong cash flows and improving leverage make the CP offer an attractive investment for those seeking short-term, high-yield returns.
