Dangote Cement to raise new bonds

Dangote Cement PLC has announced plans to raise medium- to long-term debt funding from the domestic capital markets to enhance its financial structure and support ongoing operations.

The company revealed this in a filing to the Nigerian Exchange on November 15, 2024, signed by its secretary, Edward Imoedemhe.

The filing also confirmed that Dangote Cement has submitted its application for the proposed bonds to the Securities and Exchange Commission and has received the required regulatory approvals to proceed.

The notice reads, “Dangote Cement PLC (the ‘Company’) has obtained approval of its Board of Directors to access medium- to long-term debt funding from the domestic capital markets.

“The company had filed an application with the Securities and Exchange Commission in respect of the bonds, and relevant approvals have now been received.”

The filing also indicated that the Series 1 bonds, a component of Dangote Cement’s N300 billion multi-instrument issuance program, will be issued in the near future, depending on favorable market conditions.

The proceeds from the bond issuance are intended to refinance existing debt obligations and provide additional working capital to support Dangote Cement’s operations and growth plans.

In 2021, Dangote Cement introduced a N300 billion multi-instrument issuance program, registered with the SEC and the Financial Markets Dealers Quotation.

The first issuance, Series 1 fixed-rate bonds, raised N50 billion in three tranches.

Following this success, the Series 2 fixed-rate bonds raised an additional N116 billion across three tranches, bringing the total capital raised under the program to about N166 billion. The bonds offer maturity periods of 3, 5, 7, and 10 years.