Dangote Cement Mulls Debt Funding Options with Planned N300 Billion Bond Issuance
The Board of Africa’s most dominant cement manufacturer, Dangote Cement Plc, has approved that the company can access the Nigerian Capital Market with the aim of maximising available funding sources. The ultimate aim is to support business growth.
A corporate action that was signed by the company’s Deputy Company Secretary, Edward Imoedemhe, explained that the Cement maker wants to explore its long-term debt funding options. Upon obtaining regulatory approval and subject to whether market conditions are favourable, the company will issue a N300 billion bond programme.
In the meantime, Dangote Cement has submitted an application to the Securities and Exchange Commission (SEC) with regards to registering the bond issuance programme. See part of the statement by the company below:
“Dangote Cement Plc. (“the Company”) has obtained approval from its Board of Directors to access the Capital Market to support business growth and maximize available sources of its debt funding.
“Subsequent to obtaining regulatory approvals, the Company intends to explore its medium to long-term debt funding options through the debt capital market, subject to favorable market conditions. When raised, the
proposed funding will be used for capital expenditure of the Company’s expansion projects, short term debt refinancing, and working capital requirements.”
As you may well know, Dangote Cement is majority-owned by Africa’s richest man, Aliko Dangote. The company, which was incorporated on November 4th 1992 and listed on the Nigerian Stock Exchange in 2010. It is currently the largest listed entity on the Nigerian bourse with a market capitalisation of N3.8 trillion, according to latest data obtained from Reuters.
The Dangote Cement stock (DANCEM) is currently trading with a share price of N225.00 on the NSE, according to Bloomberg Markets.
The Continuous Wealth Decline of Patrice Motsepe: A Further Loss of $100 Million
Patrice Motsepe, South African billionaire, continues to face financial setbacks as his n…