Dangote Cement to Raise N50bn New Capital

Dangote Cement Plc has offered series 10 and 11 of its Commercial Papers under its N300bn Issuance Programme.

According to reports from the stockbroking firms, the series, which was up to N50bn, was opened on Monday and will close on Tuesday.

In the CP Programme Memorandum, Dangote Cement established an N150 billion commercial paper issuance programme. It was increased to N300bn on July 13, 2023.  The CP has been listed on the FMDQ Securities Exchange Limited.

It was announced that the net proceeds from each series under the CP programme will be used to “support Dangote Cement’s short-term financing requirements and general corporate purposes,” while the repayment will be funded from the operating cash flows of the issuer.

Dangote Cement has a combined capacity of 52Mta (35.3Mta in Nigeria) across its operations in 10 African countries. According to reports, the company operated a fully integrated “quarry-to-customer” business with activities covering the manufacturing, sales, and distribution of cement.

The PUNCH reports that in the first nine months of this year, Dangote Cement earned N933.08bn compared to N890.65bn in the same period in 2022, representing a 4.76% appreciation.