Nigeria’s Dangote Cement issues N50bn notes under N150bn CP programme

Dangote Cement, the largest cement producer in Africa, announces the issuance of N50bn Series 1 and 2 notes as part of its N150bn Commercial Paper programme announced on June 27, 2018.

The Series 1 and 2 notes will be listed on the FMDQ OTC Securities Exchange of Nigeria on July 19, 2018. Funds raised under the CP programme will be used for capital expenditures, working capital and general objectives of the company.

“This landmark transaction is the largest-ever Commercial Paper issuance by a corporate issuer in Nigeria,” Joe Makoju, Group Chief Executive Officer, Dangote, said

He added, “This landmark transaction is the largest-ever Commercial Paper issuance by a corporate issuer in Nigeria. It allows us to broaden our sources of funding and combine established bank lines of credit with access to capital market funding, which will lower our overall cost of borrowing.

“The success of this programme reflects the high quality of our business and its strong cash generation, made possible by our market-leading positions in Nigeria and across sub-Saharan Africa, where demand for cement is growing rapidly.”

Dangote Cement was advised by Stanbic IBTC Capital Limited as sole arranger and dealer, Stanbic IBTC Bank Plc as issuing calculation and paying agent, Banwo & Ighodalo as legal counsel and Deloitte as auditors to the issuer.