Dangote Cement Raises N116bn From Bond Issuance To Expand, Refinance Debt

Dangote Cement Plc has completed its biggest corporate bond issuance in the history of the capital market.

The country’s biggest cement maker said it has completed the issuance of N116bn Series 2 Bond issuance.

The cement company revealed this on Wednesday in a statement on the Nigerian Exchange Group.

The bond Issuance, which is the second issuance under the Company’s N300bn multi-instrument

Dangote said the 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 issuance is a three tranches: a 5-year Tranche A issuance priced at 11.85 per cent, 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, according to the company.

Michel Puchercos, Group Managing Director of Dangote Cement, said: “Dangote Cement is delighted to have successfully undertaken a second issuance under our Multi-Instrument Issuance Programme which was launched last year, 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.”

The company said, 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 and FCMB Capital Markets acted as Joint Issuing Houses.

Also, others acting as joint issuing houses were; Futureview Financial Services, Vetiva Capital, Quantum Zenith Capital and Rand Merchant Bank Nigeria acted as Joint Issuing Houses.

According to the manufacturer, bond notes will be listed on the Nigerian Exchange Limited and FMDQ Securities.