Dangote Cement N100bn bond issuance opens

…to close on Friday Nov. 22

The first tranche of Dangote Cement Plc bond offer of up to N100 billion under its N300 billion multi-instrument issuance programme is now open and scheduled to close on Friday, November 22, 2024.

Dangote Cement had obtained approval of its Board of Directors to access medium to long-term debt funding from the domestic capital markets.

The proceeds of the bonds will be applied towards refinancing existing debt and for working capital purposes. In nine months to September 30, Dangote Cement reported N2.5 trillion in revenue for the nine months of 2024, largely fuelled by increased local market sales.

Dangote Cement is Sub-Saharan Africa’s leading cement producer, with a combined capacity of 52Mta (35.3Mta 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.

Read also: Fast Credit’s N5bn commercial paper issuance oversubscribed

Through its investments, the Company eliminated Nigeria’s dependence on imported cement and transformed the nation into an exporter of cement, serving neighbouring countries.

According to the largest cement maker’s 9M’24 result, its revenue grew by 69.1 percent from N1.5 trillion reported in the same period of 2023 with Nigeria sales volume rising by 9.5 percent and Pan-Africa market sales declining by 1.6 percent.

“Our financial results for the nine months demonstrate superior performance across key metrics, as we diligently execute our strategic priorities for the year. Group volumes grew by 1.9 percent year-on-year to 20.7Mt, largely due to a significant rebound in Nigeria,” said Arvind Pathak, chief executive officer, Dangote Cement.

After-tax profit during the period increased by a single digit 0.55 percent to N279.09 billion from N277.5 billion. A breakdown of figures shows Dangote Nigeria’s EBITDA rose by 37.25 percent to N506.11 billion while the Pan-African regions were up 45.35 percent to N170.01 billion.

A further analysis of the company’s statement disclosed that in the first nine months, the cost of sales increased by 92 percent, rising to N1.2 trillion from N642 billion in the same period of 2023.

Dangote Cement’s earnings before interest, taxes, depreciation, amortisation & impairment (EBITDA) spiked by 37.10 percent to N908.69 billion as at September 2024 from N662.76 billion as of September 2023.