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Business News of Thursday, 17 June 2021

Source: www.mynigeria.com

Dangote Cement completes issuance of N50 billion bond programme

Dangote Cement Dangote Cement

Dangote Cement Plc has announced the successful issuance of N50 billion series 1 fixed rate senior unsecured bonds, under its new N300 billion multi-instrument issuance programme.

In a statement on Tuesday, the cement producer said 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.

The bonds will be listed on the Nigerian Exchange Limited and FMDQ Securities Exchange.

Dangote Cement said that the proceeds of the bond issuance will be deployed for the company’s expansion projects, short-term debt refinancing and working capital requirements.

“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 a different type of investors,” the statement reads.

“The ability to issue Green Bonds and Sukuk will enable the company to leverage the depth and breadth of the Nigerian market.”

Speaking on the bond issuance, Michel Puchercos, chief executive officer of Dangote Cement Plc, said: “This bond issuance allows us to move a step further in achieving our expansion objectives and will be deployed to projects instrumental in supporting our export strategy while improving our 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.”

Absa Capital Markets Nigeria acted as lead issuing house while 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 served as joint issuing houses.