NSE lists Dangote Cement N100bn bonds

The Nigerian Stock Exchange (NSE) on Monday listed Dangote Cement Plc N100 billion, 5 Years 12.50 per cent Fixed Rate Series 1 Senior Unsecured Bonds due 2025.

The bond is under the N300 billion Debt Issuance Program of Cement manufacturing company that was 100 per cent subscribed.

Despite current market headwinds due to the COVID-19 pandemic, the transaction was extremely well received and attracted significant demand from a wide range of high-quality investors including domestic pension funds, asset managers, insurance companies, banks and international fund managers.

The transaction represents the largest corporate bond issuance in Nigeria’s debt capital markets, reflecting Dangote Cement’s strong credit quality as well as the resilience of the Nigerian debt capital market despite current global challenges.

The transaction enables the Company to lower its average cost of debt and extend the average maturity of its debt. Dangote Cement intends to use the net proceeds of the offering to refinance existing short-term debt previously applied towards cement expansion projects, working capital and general corporate purposes.

The Bonds will be listed on The NSE and the FMDQ Securities Exchange Limited, and for the first time in the history of the Nigerian debt capital markets, investors will have the option of lodging securities with either the Central Securities Clearing System or the FMDQ Depository.

The Chief Executive Officer of Dangote Cement, Michel Puchercos in a statement had said “This landmark transaction is the largest ever bond issuance by a corporate issuer in Nigeria. It allows us to further broaden our sources of funding by accessing long-term debt at competitive costs from the capital market and builds further on the success of our domestic commercial paper programme.

The success of this transaction, in the current challenging environment, illustrates investors’ continuous confidence in Dangote Cement’s strategy, strong cash generation and solid credit profile.”