Dangote Cement to raise N300bn through bonds


Dangote Cement Plc has unveiled plans to raise N300 billion through a bond shelf programme. Brian Egan Chief Financial Officer (CFO) of the firm, disclosed this during an investor conference call.
In addition to the proposed Naira bond raise, the company is also considering raising more capital through Eurobonds. The Naira bonds will be raised in tranches of N50 billion.
Brian Egan, the chief financial officer of the company said Tuesday, during an investor conference call, according to Blomberg, that it plans to issue the debt over three years, and the bond will be issued in tranches of N50 billion at a time whenever interest rates are favorable, said Egan.
Africa’s largest producer of the building material, controlled by Africa’s richest man Aliko Dangote, is also considering to sell Eurobonds to boost its funding, Egan said. Dangote is planning to spend $350 million on capital projects this year, including the building of export facilities at Nigeria’s seaports, which will see it begin shipments of clinker and cement to neighboring West African countries.
The funds raised will be used for capital projects including the construction of export facilities at Nigeria’s ports. This will enable the firm export much needed raw materials to its other subsidiaries. The company had in July last year, disclosed plans to expand its production capacity from 45 million tonnes to 80 million tonnes per annum.
Dangote Cement currently has operations in Senegal, Sierra Leone, Ghana, Cameroon, South Africa, Zambia, Tanzania, Congo and Ethiopia.
The Dangote Group manages Terminal E of the Apapa ports through a subsidiary Greenview Development Services Limited.
Dangote Cement Plc was incorporated in Nigeria as a public limited liability company on 4th November, 1992 and commenced operations in January 2017 as Obajana Cement Plc. The name was changed on 14th July, 2010 to Dangote Cement Plc.
FY 2017 results show Revenue increased from N615 billion in 2016 to N805 billion in 2017. Profit before tax went up from N189 billion in 2016 to N289 billion in 2017. Profit after tax also surged from N142 billion in 2016 to N204 billion in 2017. The company declared a dividend of N8.50 per share.
Dangote Cement is currently trading at N260 in today’s trading session on the Nigerian Stock Exchange (NSE), down 1.89 percent year to date, the stock is up 15.22 percent.