Dangote Cement Plc has said it is seeking to b up to N100bn from the bond market under its N300bn Debt Issuance Programme.
The company said the funds from the debut offering in the bond market would be utilised to refinance existing short-term debt previously applied towards cement expansion projects, working capital and general corporate purposes.
The bond (medium-term debt paper) being issued for the first time signifies confidence in business growth and in the Nigerian economy long term growth, according to a statement issued by the company on Sunday.
It said, “Dangote Cement Plc is a good offer for discerning institutional investors and high net worth individuals as it is Nigeria’s largest company by market capitalisation on the Nigerian Stock Exchange.
“It is the largest cement manufacturer in sub-Saharan Africa with an installed capacity of 45.6 million metric tonnes annually across its operations in 10 African countries.”
According to the statement, the company has a strong corporate governance framework supported by five independent directors while its shareholding base is diversified.
The company noted that it registered a N150bn Commercial Paper programme in 2018, and had issued an aggregate amount of N300bn since the establishment of the programme.
It said, “Certain factors across Africa signal positive long-term trends for Dangote Cement. There is an increasing demand for cement as urbanisation continues across the continent, demanding more infrastructure, housing and commercial building.
“As democracy becomes entrenched in African states, it brings increasing political stability, enabling rapid economic growth, growth in infrastructure such as roads, housing and schools built from cement.”