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.
This was disclosed in a notification signed by the deputy company’s secretary, Edward Imoedemhe, sent to the Nigerian Stock Exchange, which stated that, the bonds were issued on May 26, 2021 at coupon rates of 11.25 percent, 12.50 percent and 13.50 percent for the 3, 5 and 7-year tranches respectively.
Despite market headwinds, 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. The proceeds of the bond issuance will be deployed for the company’s expansion projects, short-term debt refinancing and working capital requirements.
Commenting on the bond issuance, Michel Puchercos, CEO, Dangote Cement Plc said the ability to issue Green Bonds and Sukuk would allow 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 statement also noted that the bonds which is expected to be listed on the Nigerian Exchange Limited and FMDQ Securities Exchange, has Absa Capital Markets Nigeria acting as lead issuing house for the series 1 bonds.
In addition, 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.
Besides this first issuance of a traditional bond under the new Multi-Instruments Programme, Dangote Cement has registered a programme that considers different types of fixed-income instruments to cater for different types of investors.
Dangote Cement Plc is Sub-Saharan Africa’s largest cement producer with an installed capacity of 48.6 metric tons annually (MTa) capacity across 10 African countries. It operates a fully integrated “quarry-to-customer” business with activities covering manufacturing, sales, and distribution of cement. We have a production capacity of 32.3Mta in our home market, Nigeria.
Its Obajana plant in Kogi State, Nigeria, is the largest in Africa with 16.3 Mta of capacity across four lines; its Ibese plant in Ogun State has four cement lines with a combined installed capacity of 12Mta, while its Gboko plant in Benue state has 4Mta.
The company operates across different African countries, including 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).
