By Dipo Olowookere
Largest sub-Saharan African cement producer, Dangote Cement, has commenced the process of obtaining requisite approvals from the Securities and Exchange Commission (SEC) for the issuance of series 1 bonds.
The cement maker, in a notice to the Nigerian Stock Exchange (NSE), said it intends to access the capital markets to issue the maiden series of bonds for the medium-term debt funding.
In the disclosure, the company said proceeds from the exercise would be used to refinance existing short-term debt previously applied towards cement expansion projects, working capital and general corporate purposes.
The inaugural issuance of bonds is under the firm’s N300 billion shelf registration programme and already, the board of Dangote Cement has approved the exercise.
“Dangote Cement Plc intends to issue its maiden series of bonds imminently, subject to obtaining regulatory approvals and favourable market conditions,” the company said in the statement signed by its deputy scribe, Mr Edward Imoedemhe.
Dangote Cement Plc is Nigeria’s largest company by market capitalisation and the largest cement producer in Sub Saharan Africa with an installed capacity of 45.6Mta across operations in 10 African countries.
The company recently received an approval of shareholders to commence a buy-back programme and as at the time of filing this report on Tuesday afternoon, share price of the cement manufacturer was trading at N129.70 per unit.
