WED, 04 MAY, 2022-theGBJournal | Dangote Cement PLC, Sub-Saharan Africa’s largest cement producer, today announced the successful completion of its N116 billion Series 2 Bond issuance, which is the largest corporate bond issuance in the history of the Nigerian Capital Markets.
‘’This landmark transaction would fund our expansion projects and further support the implementation of our export strategy. I want to thank our stakeholders and investor community for their strong participation in another Bond issuance with the Company,” Mr Michel Puchercos, Group Managing Director of Dangote Cement said of massive bond issuance.
The Bond Issuance, which is the second issuance under the Company’s N300 billion Multi-Instrument Issuance Programme, attracted participation from a wide array of institutional investors including pension funds, asset managers, banks, insurance companies and high networth individuals.
The Bond Issuance comprised three tranches: a 5-year Tranche A issuance priced at 11.85%, a 7-year Tranche B issuance priced at 12.35%, and a 10-year Tranche C issuance priced at 13.00%. The proceeds of the Bond Issuance will be used to finance the Company’s Nigeria expansion projects, short-term debt refinancing and working capital requirements.
Stanbic IBTC Capital acted as Lead Issuing House/Bookrunner to the Bond Issuance, whilst Absa Capital Markets, Meristem Capital, Standard Chartered, United Capital, Coronation Merchant Bank, Ecobank Development Company, FBNQuest Merchant Bank, FCMB Capital Markets, Futureview Financial Services, Vetiva Capital, Quantum Zenith Capital and Rand Merchant Bank Nigeria acted as Joint Issuing Houses.
Commenting further on the bond Issuance, Puchercos said, “Dangote Cement is delighted to have successfully undertaken a second issuance under our Multi-Instrument Issuance Programme which was launched last year, and even more delighted to have concluded the most significant corporate bond issuance in the history of the Nigerian Debt Capital Markets.
The Bond notes will be listed on the Nigerian Exchange Limited and FMDQ Securities Exchange.
Dangote Cement PLC is Sub-Saharan Africa’s largest cement producer with an installed capacity of 51.6Mta capacity across 10 African countries. The Company operates a fully integrated “quarry-to-customer” business with activities covering manufacturing, sales and distribution of cement. Dangote Cement has a production capacity of 35.3Mta in their home market, Nigeria.
The Obajana plant in Kogi state, Nigeria, is the largest in Africa with 16.3Mta of capacity across five lines; the Ibese plant in Ogun State has four cement lines with a combined installed capacity of 12Mta, the Gboko plant in Benue state has 4Mta; and the Okpella plant in Edo state has 3Mta.
Dangote Cement has operations in Cameroon (1.5Mta clinker grinding), Congo (1.5Mta), Ghana (1.5Mta import), Ethiopia (2.5Mta), Senegal (1.5Mta), Sierra Leone (0.5Mta import), South Africa (2.8Mta), Tanzania (3.0Mta), Zambia (1.5Mta).
Meanwhile, the cement producing giant published its Q1-22 unaudited financials last week Friday (April 29), reporting PAT growth of 18.0% y/y to N105.85 billion while EPS grew by 17.0% y/y to N6.18/s.
The growth in EPS was driven mainly by the strong topline growth (+24.2% y/y), which proved sufficient in offsetting the spikes in cost of sales ex-depreciation (+23.3% y/y) and OPEX ex-depreciation (+39.4% y/y).
The group’s aggregate revenue grew by 24.2% y/y to NGN413.18 billion in Q1-22, driven mainly by expansion in Nigeria operations (+34.3% y/y) as revenue from Pan African operations (-1.8% y/y) faltered.
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