Dangote Cement Plc has announced the successful issuance of N50 billion Series one Fixed Rate Senior Unsecured Bonds, under its new N300 billion Multi-Instrument Issuance Programme.
Despite market headwinds, the bond issuance was well received and recorded participation from a wide range of investors including domestic pension funds, asset managers, insurance companies and high net-worth investors. The proceeds of the bond issuance will be deployed for the company’s expansion projects, short-term debt refinancing and working capital requirements.
The bonds were issued on May 26, 2021 at coupon rates of 11.25 per cent, 12.50 per cent and 13.50 per cent for the three, five and seven-year tranches respectively.
Aside from this first issuance of a traditional bond under the new Multi-Instruments Programme, Dangote Cement has registered a programme enabling it to consider different types of fixed income instruments to cater for different type of investors.
The CEO of Dangote Cement, Michel Puchercos stated the ability to issue Green Bonds and Sukuk will enable the company leverage the depth and breadth of the Nigerian market.
According to Puchercos, this bond issuance allows us move a step further in achieving our expansion objectives and will be deployed to projects instrumental in supporting our export strategy while improving its cost competitiveness.
“We thank the investor community for their continued support in the management of Dangote Cement and their successful participation in the bond issuance,” he said.
The Bonds which are expected to be listed on the Nigerian Exchange (NGX) Limited and FMDQ Securities Exchange, according to the company, has Absa Capital Markets Nigeria acting as Lead Issuing House for the Series one Bonds.
Stanbic IBTC Capital, Standard Chartered Capital & Advisory Nigeria Limited, United Capital Plc, FBN Quest Merchant Bank, FCMB Capital Markets, Coronation Merchant Bank, Ecobank Development Corporation Nigeria, Futureview Financial Services, Meristem Capital Limited, Rand Merchant Bank, Quantum Zenith Capital and Vetiva Capital Management were the Joint Issuing Houses.