Dangote Cement announced the issuance of N50 billion Series 1 and 2 Notes under its N150 billion Commercial Paper Programme.
The Series 1 and 2 Notes would be listed on Nigeria’s FMDQ OTC Securities Exchange on July 19, 2018. Funds raised in the Commercial Paper (CP) Programme would be used for capital expenditure, working capital and general corporate purposes.
Group chief executive officer of Dangote Cement, Joe Makoju, said, this landmark transaction was the largest-ever commercial paper issuance by a corporate issuer in Nigeria.
He stated that “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.”
Makoju pointed out that the success of this programme reflects the high quality of the company’s business and strong cash generation, made possible by Dangote Cement market-leading positions in Nigeria and across Sub-Saharan Africa, where demand for cement was growing rapidly.
Dangote Cement in its first quarter results for the period ended March 31, 2018 said it exported a total of 211 kilotons of cement to Ghana, Togo and Niger.
The company’s volume in the Nigeria also increased significantly by 5.3 per cent to nearly 4 million tons for the period under review. Dangote Cement’s gross revenue increased by 16 per cent, from N208.12 billion in the corresponding period of 2017 to N242.1 billion.
The company’s gross profit for the period rose from N120.36 billion to N144.76 billion indicating an increase of 20.30 per cent. Profit- before- tax rose by 40.2 per cent, from N77.32 billion to N108.04 billion, while profit – after – tax for the period went up by 29 per cent, from N55.8 billion to N72.12 billion.
Makoju speaking on the results said, “The first quarter of 2018 has started strongly with substantial increases in revenues and profitability that drove excellent cash generation across the Group.
“Despite a slightly slower start to the quarter, Nigerian volumes increased significantly in March and underpin our confidence that 2018 will be a good year for the Group. Across our pan-African operations, higher revenue per tons boosted revenues and increased EBITDA margins, with great potential to improve further when Tanzania switches to gas.”
Dangote Cement is Africa’s leading cement producer with nearly 46Mta capacity across Africa.
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