Dangote Cement to issue madien bonds for medium-term debt financing
The dominant cement producers in Nigeria, Dangote Cement Plc (DCP) has obtained approvals from its board of directors to access the capital market for medium term debt funding.
The Deputy Company Secretary, Edward Imoedemhe, said in a statement on Monday to the Nigerian Stock Exchange (NSE) that the maiden bond issuance was subject to regulatory approval and favourable market conditions.
He stated that the proceeds of the Series 1 Bonds would be used to refinance existing short-term debt previously applied toward cement expansion projects.
He said that the proceeds would also be used for working capital and general corporate purposes.
According to him, book building for the Series 1 Bonds will commence following approval of the transaction by the Securities and Exchange Commission.
He said that the process of obtaining requisite approvals from the SEC for issuance of the bonds had begun.
It is also the largest cement producer in sub-Sahara Africa, with an installed capacity of 45.6mta across operations in 10 African countries.