By Dipo Olowookere
Following the success of its previous sale of commercial papers to investors in the local debt capital market, Dangote Cement is considering another issuance of the debt instrument.
The firm said in a notice to the Nigerian Exchange (NGX) Limited on Monday, August 23, 2021, that it wants to sell another N150 billion worth of CPs.
The cement maker disclosed that the N150 billion commercial paper programme is mainly to fund its working capital and general corporate purposes.
Business Post reports that since 2018, Dangote Cement, which is Sub-Saharan Africa’s largest cement producer with an installed capacity of 48.6Mta across 10 African countries, inclusive of 32.3Mta in Nigeria, has sold about N450 billion commercial papers to investors.
Due to the confidence investors have in the company in repaying the debt, the organisation is issuing the fresh papers for the smooth running of its operations.
In the notice, signed by the Deputy Company Secretary, Mr Edward Imoedemhe, the clinker exporter said the exercise allows it to expand its funding sources and competitive rates.
The commercial paper “allows us to broaden our funding sources and, combined with our N300 billion multi-instrument issuance bond programme, increases our access to capital market funding,” the company disclosed.
“The establishment of a new N150 billion commercial paper confirms Dangote Cement Plc’s ambition to maintain its long and successful track record of accessing the Nigerian debt capital market.
“Dangote Cement has issued an aggregate of N450 billion in Commercial Papers since 2018,” the Chief Executive Officer of Dangote Cement, Mr Michel Puchercos, said.
“I want to thank our stakeholders and investors who contributed to the success of all the previous issuances of the commercial paper programme.
“We look forward to the same warm reception as we engage with fixed income investors under this
new programme. Thank you again for your continued trust in Dangote Cement,” Mr Puchercos further said.
Adedapo Adesanya