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Dangote Cement begins largest ever Commercial Paper issuance by Nigerian firm
Dangote Cement Plc, Africa’s largest cement producer, has announced the issuance of N50 billion Series 1 and 2 Notes under its N150 billion Commercial Paper Programme, announced on 27th June 2018.
The Series 1 and 2 Notes will be listed on Nigeria’s FMDQ OTC Securities Exchange on 19th July 2018. Funds raised in the Commercial Paper (CP) Programme will be used for capital expenditure, working capital and general corporate purposes.
Giving an insight on the scheme, Joseph Makoju, Group Chief Executive Officer, said: “This landmark transaction is the largest-ever Commercial Paper issuance by a corporate issuer in Nigeria. It allows us to broaden our sources of funding and combine established bank lines of credit with access to capital market funding, which will lower our overall cost of borrowing.
Continuing, he averred that “The success of this programme reflects the high quality of our business and its strong cash generation, made possible by our market-leading positions in Nigeria and across Sub-Saharan Africa, where demand for cement is growing rapidly.”
Business Hilights gathered that Dangote Cement was advised by Stanbic IBTC Capital Limited as Sole Arranger and Dealer, Stanbic IBTC Bank PLC as Issuing Calculation and Paying Agent, Banwo & Ighodalo as Legal Counsel and Deloitte as Auditors to the Issuer.