• Friday, March 29, 2024
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Dangote Cement completes record N116bn Series 2 bond issuance

Dangote Cement emerges best performing stock on NGX

Sub-Saharan Africa’s largest cement producer, Dangote Cement Plc has announced the successful completion of its N116billion Series 2 bond issuance, which is the largest corporate bond issuance in the history of the Nigerian Capital Markets.
The bond Issuance, which is the second issuance under the Company’s N300billion Multi-Instrument Issuance Programme, attracted participation from a wide array of institutional investors including pension funds, asset managers, banks, insurance companies and high networth individuals.

The Bond Issuance comprised three tranches: a 5-year Tranche A issuance priced at 11.85percent, a 7-year Tranche B issuance priced at 12.35percent, and a 10-year Tranche C issuance priced at 13percent. The proceeds of the Bond Issuance will be used to finance the Company’s Nigeria expansion projects, short-term debt refinancing and working capital requirements.

The Bond notes will be listed on the Nigerian Exchange Limited and FMDQ Securities Exchange.
Stanbic IBTC Capital acted as Lead Issuing House/Bookrunner to the Bond Issuance, whilst Absa Capital Markets, Meristem Capital, Standard Chartered, United Capital, Coronation Merchant Bank, Ecobank Development Company, FBNQuest Merchant Bank, FCMB Capital Markets, Futureview Financial Services, Vetiva Capital, Quantum Zenith Capital and Rand Merchant Bank Nigeria acted as Joint Issuing Houses.

Commenting on the Bond Issuance, Michel Puchercos, Group Managing Director of Dangote Cement, said: “Dangote Cement is delighted to have successfully undertaken a second issuance under our Multi-Instrument Issuance Programme which was launched last year, and even more delighted to have concluded the most significant corporate bond issuance in the history of the Nigerian Debt Capital Markets.

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“This landmark transaction would fund our expansion projects and further support the implementation of our export strategy. I want to thank our stakeholders and investor community for their strong participation in another Bond issuance with the Company.”

Dangote Cement Plc is Sub-Saharan Africa’s largest cement producer with an installed capacity of 51.6Mta capacity across 10 African countries. The Company operates a fully integrated “quarry-to-customer” business with activities covering manufacturing, sales and distribution of cement. Dangote Cement has a production capacity of 35.3Mta in their home market, Nigeria.

The Obajana plant in Kogi state, Nigeria, is the largest in Africa with 16.3Mta of capacity across five lines; the Ibese plant in Ogun State has four cement lines with a combined installed capacity of 12Mta, the Gboko plant in Benue state has 4Mta; and the Okpella plant in Edo state has 3Mta.

Dangote Cement, through its current investment, has removed Nigeria’s dependence on imported cement. It has transformed the nation into an exporter of cement to neighbouring countries. In addition, Dangote Cement has operations in Cameroon (1.5Mta clinker grinding), Congo (1.5Mta), Ghana (1.5Mta import), Ethiopia (2.5Mta), Senegal (1.5Mta), Sierra Leone (0.5Mta import), South Africa (2.8Mta), Tanzania (3.0Mta), Zambia (1.5Mta).