Dangote Cement mulls first tranche of N300bn bond issuance

Dangote Cement Plc said it has 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 fueled by increased local market sales.

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The Company said it had filed an application with the Securities and Exchange Commission (SEC) in respect of the bonds, and relevant approvals have now been received.

The largest cement maker said the bonds will be issued imminently, subject to favourable market conditions.

According to the 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.

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.

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.

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After-tax profit during the period increased by a single digit 0.55 percent to N279.09 billion from N277.5 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.