Dangote cement opens N100bn commercial papers for subscription

Dangote Cement Plc has returned to the debt capital market to raise N100 billion via commercial papers offered to investors, MarketForces Africa gathers from investment banking experts. The cement company opens the offers across Series 1 and Series 2 commercial papers under its N500 billion issuance programme registered with the authority.

The company hinted that the net proceeds from the commercial paper offers will be used for working capital purposes. Series 1 commercial paper with 181 days to maturity is priced at a discount rate of 16.1026%, translating to an implied yield of 17.50% per annum. Also, the series 2 commercial paper offering with 265 days to maturity is priced at 16.6968%, translating to an implied yield of 19%. Details for the offer showed that the programme will close for subscription on November 19. Dangote Cement is Sub-Saharan Africa’s leading cement producer, with a combined capacity of 55 Mtpa (35.3 Mtpa in Nigeria) across its operations in 11 African countries.

The cement company operates a fully integrated “quarry-to-customer” business with activities covering manufacturing, sales, and distribution of cement. Through its investments, the company eliminated Nigeria’s dependence on imported cement and transformed the nation into an exporter of cement, serving neighbouring countries.