Africa’s largest cement producer, Dangote Cement Plc, has disclosed the successful issuance of N50 billion Series 1 Fixed Rate Senior Unsecured Bonds under the company’s new NGN300 billion Multi-Instrument Issuance Programme.
This was announced on Wednesday, in a statement by the manufacturer, saying that the “…bonds were issued on May 26 2021 at coupon rates of 11.25%, 12.50% and 13.50% for the 3, 5 and 7- year tranches respectively.”
The statement went on to say that irrespective of 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.
“Aside from 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.
“The ability to issue Green Bonds and Sukuk will enable the company leverage the depth and breadth of the Nigerian market.”
In his speech concerning the above, the CEO, Dangote Cement, Michel Puchercos, said, “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.”
The statement also maintained that, “Absa Capital Markets Nigeria acted as Lead Issuing House for the Series 1 Bonds, and 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 acted as Joint Issuing Houses.”
It concluded that, “The Bonds will be listed on the Nigerian Exchange Limited and FMDQ Securities Exchange.”
Azuka Edokobi is a Writer , a Farmer, a Supply Chain Expert and an Entrepreneur