Africa’s largest cement producer, Dangote Cement Plc has announced the successful issuance of 50 billion Series 1 Fixed Rate Senior Unsecured Bonds under its new N300 billion Multi-Instrument Issuance Programme.
Announcing this in a statement by the organization, Dangote Cement disclosed that the bond issuance was well received and recorded participation from a wide range of investors including domestic pension funds, asset managers, insurance companies and high net-worth investors despite market headwinds.
It also disclosed that the proceeds of the bond issuance will be deployed for the company’s expansion projects, short-term debt refinancing and working capital requirements.
“The bonds were issued on May 26, 2021 at coupon rates of 11.25%, 12.50% and 13.50% for the 3, 5 and 7-year tranches respectively.
“Aside from this first issuance of a traditional bond under the new Multi-Instruments Programme, Dangote Cement has registered a programme enabling it to consider different types of fixed income instruments to cater for different type of investors.” It stated.
Commenting on this, the Cement giant’s Deputy Company Secretary, Mr. Edward Imoedemhe in Lagos quoted the Dangote Cement Chief Executive Officer, Michel Puchercos as commenting on the bond issuance, saying the ability to issue Green Bonds and Sukuk will enable the company leverage the depth and breadth of the Nigerian market.
“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 Bonds which is expected to be listed on the Nigerian Exchange Limited and FMDQ Securities Exchange, according the Company has Absa Capital Markets Nigeria acting as Lead Issuing House for the Series 1 Bonds.
It disclosed that 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 are the Joint Issuing Houses.
Dangote Cement Plc is Sub-Saharan Africa’s largest cement producer 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.