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Dangote Cement lists N100 billion bonds on NSE

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Africa’s leading cement producer, Dangote Cement Plc, Monday listed its N100 billion Series 1 Senior Unsecured Bonds on the Nigerian Stock Exchange (NSE).

Issued by the company on 24th April 2020, the debt securities were 100% subscribed.

The 5-year bonds, which constitute a phase of the N300 billion Debt Issuance Program of Dangote Cement Plc, carry a coupon of 12.50% fixed rate and are due in 2025, a market bulletin released by the NSE today states.

The bond’s coupon payment is semi-annually, on 30th October and 30th April of each year commencing on 24th April 2020 until the maturity date.

The debt-raising programme is the company’s first bond issuance in the Nigerian debt market.

According to the cement-maker, the proceeds of the bond offering will be used for working capital purpose and refinancing current short-term debt that was previously raised for some expansion projects.

The corporate bonds are reportedly the biggest ever to be issued by a public company in Nigeria.

READ ALSO: Dangote Cement proposes N300bn bond issuance

“It allows us to further broaden our sources of funding by accessing long-term debt at competitive costs from the capital market and builds further on the success of our domestic commercial paper programme.

“The success of this transaction, in the current challenging environment, illustrates investors’ continuous confidence in Dangote Cement’s strategy, strong cash generation and solid credit profile,” Michel Puchercos, Chief Executive Officer, Dangote Cement, said in April following the bond issue.

Dangote Cement on Sunday announced it exported 27,800 metric tonnes of clinker to Senegal from its export terminal in Apapa Port in Lagos, the first time such a feat would be recorded by the country.

Exportation of clinker is expected to make Nigeria as one of the leading exporters of the mineral in the world and boost the country’s foreign exchange earnings as well as reduce unemployment.

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