Dangote Cement raises N116bn bond to finance expansion projects

Dangote Cement Plc has disclosed that it has completed the issuance of N116 billion series 2 fixed rate senior unsecured bonds under its N300 billion multi-instrument issuance programme.

The cement producer in June 2021 had successfully issued N50 billion series 1 fixed rate senior unsecured bonds.

In a statement on Wednesday, the company said the bond issuance comprised three tranches namely a 5-year tranche A issuance at 11.85 per cent, a 7-year tranche B issuance priced at 12.35 per cent, and a 10-year tranche C issuance priced at 13.00 per cent.

Dangote Cement said the proceeds of the bond issuance would be used to finance the company’s Nigeria expansion projects, short-term debt refinancing and working capital requirements.

It said the bond notes would be listed on the Nigerian Exchange Limited and FMDQ Securities Exchange.

“Dangote Cement PLC (“Dangote Cement” or the “Company”), Sub-Saharan Africa’s largest cement producer, is pleased to announce the successful completion of its N116Billion Series 2 Bond issuance (the “Bond Issuance”), which is the largest corporate bond issuance in the history of the Nigerian Capital Markets,” the statement reads.

“The Bond Issuance, which is the second issuance under the Company’s N300 billion Multi-Instrument Issuance Programme, attracted participation from a wide array of institutional investors, including pension funds, asset managers, banks, insurance companies and high net worth individuals. The Bond Issuance comprised three tranches: a 5-year Tranche A issuance priced at 11.85%, a 7-year Tranche B issuance priced at 12.35%, and a 10-year Tranche C issuance priced at 13.00%. The proceeds of the Bond Issuance will be used to finance the Company’s Nigeria expansion projects, short-term debt refinancing and working capital requirements.

“Stanbic IBTC Capital acted as Lead Issuing House/Bookrunner to the Bond Issuance, whilst Absa Capital Markets, Meristem Capital, Standard Chartered, United Capital, Coronation Merchant Bank, Ecobank Development Company, FBNQuest Merchant Bank, FCMB Capital Markets, Futureview Financial Services, Vetiva Capital, Quantum Zenith Capital and Rand Merchant Bank Nigeria acted as Joint Issuing Houses.”

Michel Puchercos, group managing director of Dangote Cement, said: “Dangote Cement is delighted to have successfully undertaken a second issuance… and even more delighted to have concluded the most significant corporate bond issuance in the history of the Nigerian debt capital markets.

“This landmark transaction would fund our expansion projects and further support the implementation of our export strategy. I want to thank our stakeholders and investor community for their strong participation in another Bond issuance with the Company.”