Dipo Olowookere
By Dipo Olowookere
The sale of Series 10 and 11 commercial paper of Dangote Cement Plc is closing today, Tuesday, November 7, 2023, Business Post reports.
The cement maker is seeking about N50 billion from the exercise to fund working capital requirements and for general corporate services.
Dangote Cement is selling the debt instrument to investors in the Nigerian capital market under its N300 billion commercial paper issuance programme.
The exercise commenced yesterday. Series 10 has an 186-day maturity at a 13.50 per cent discount rate and 14.500 per cent implied yield, while series 11 has a 270-day tenor, with an implied yield of 16.50 per cent and a discount rate of 14.71 per cent.
The minimum subscription for the commercial paper is N5 million and N1,000 thereafter.
Dangote Cement operates a fully integrated quarry-to-customer business with activities covering manufacturing, sales and distribution of cement.
It is the leading cement producer in Sub-Saharan Africa, with a combined capacity of 52Mta (35.3Mta in Nigeria) across its operations in 10 African countries.
Through its investments, the firm eliminated Nigeria’s dependence on imported cement and transformed the nation into an exporter of cement, serving neighbouring countries
In the first nine months of 2023, it generated N1.5 trillion as revenue, lower than the N1.6 trillion it recorded in the same period of last year, as its operating profit went down to N561.0 billion from N585.9 billion in 2022.
