Dangote Cement, a prominent Sub-Saharan Africa cement producer, has launched series 10 and 11 of its Commercial Papers (CP) as part of its N300 billion Issuance Programme. The offering, which spans up to N50 billion, commenced on Monday and is scheduled to conclude on Tuesday.
Key Points:
- Commercial Paper Programme Expansion:
- Dangote Cement initially established a N150 billion Commercial Paper Issuance Programme in August 2021. This programme was subsequently increased to N300 billion on July 13, 2023. The CP is listed on the FMDQ Securities Exchange Limited.
- Utilization of Proceeds:
- The net proceeds from each series within the CP programme will be allocated to support Dangote Cement’s short-term financing needs and general corporate purposes. Repayment will be sourced from the issuer’s operational cash flows.
- Dangote Cement’s Market Presence:
- Dangote Cement is a leading cement producer in Sub-Saharan Africa, boasting a combined capacity of 52 million metric tons per annum (Mta). Of this, 35.3 million Mta is attributed to its operations in Nigeria. The company operates a vertically integrated business model encompassing activities from quarrying to customer delivery.
- Financial Performance:
- In the first nine months of the current year, Dangote Cement reported earnings of N933.08 billion, reflecting a 4.76 percent increase from the N890.65 billion recorded in the corresponding period of 2022.
Conclusion: Dangote Cement’s issuance of series 10 and 11 under its N300 billion Commercial Paper programme signifies a strategic move to address short-term financing requirements and support its overall corporate objectives. The company’s expansion and robust financial performance underscore its prominent position in the cement industry within Sub-Saharan Africa.
