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Under its new N300 billion Multi-Instrument Issuance Programme, Africa’s largest cement producer, Dangote Cement Plc has announced the successful issuance of 50 billion Series 1 Fixed Rate Senior Unsecured Bonds.
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.
The bonds were issued on May 26, 2021 at coupon rates of 11.25 per cent, 12.5 per cent and 13.5 per cent for the three, five and seven-year tranches respectively.
Aside 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.
A statement from the Cement giant’s Deputy Company Secretary, Mr. Edward Imoedemhe, in Lagos quoted the Chief Executive Officer, Michel Puchercos, 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, 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.
