Dangote Cement Plc has had approvals from its board of directors to access the capital markets for medium-term debt funding. The news was shared in a notification sent by the company to the Nigerian Stock Exchange (NSE) and signed by Edward Imoedemhe, the Deputy Company Secretary.
The company is the largest cement producer in Sub-Saharan Africa, with operations across 10 African countries and an installed capacity of 45.6 million metric tons.
Under its N300 billion shelf programme, the company is planning to issue series 1 bond, and obtain regulatory approvals and favourable market conditions. Series 1 bond are non-marketable bonds that cannot be bought or sold in secondary markets that offer low-risk investments. Series 1 bond earns an interest rate that is fixed for the life of the bond and an inflation rate.
The Series 1 bonds are to be used to refinance short-term debts from cement expansion projects. The funds will also be used for general corporate purposes and additional working capital. After receiving approval by the Security and Exchange Commission (SEC), the book-building for the Series 1 bonds is expected to begin.