Onome Amuge
Dangote Cement Plc, Nigeria’s leading cement producers, has hinted at a potential return to the capital market to raise fresh funds.
The company, in a disclosure filed with the Nigerian Exchange (NGX) recently, revealed that the proceeds from the planned fundraising would be used to partially refinance existing debt obligations and support its business operations.
This move, Business a.m. understands, underscores Dangote Cement’s commitment to maintaining operational efficiency while leveraging the capital market to optimise its financial structure, with market watchers closely monitoring the development as details of the fundraising exercise unfold.
Dangote Cement noted that the planned fundraising, already approved by the Securities and Exchange Commission (SEC) intends to access the local capital markets for the first tranche of its N300 billion multi-instrument issuance programme.
However, the company has yet to reveal the timeline for offering the debt instrument to investors, leaving stakeholders anticipating further updates.
The notice read, “Dangote Cement has obtained approval of its board of directors to access medium to long-term debt funding from the domestic capital markets.
“The company had filed an application with the Securities and Exchange Commission in respect of the bonds, and relevant approvals have now been received.
“The bonds will be issued imminently, subject to favourable market conditions.
“The proceeds of the bonds will be applied towards refinancing existing debt and for working capital purposes.”
With an impressive production capacity of 52 million tonnes per year across Africa, Dangote Cement Plc stands as the largest cement producer in sub-Saharan Africa.
The company’s products are considered a top choice for block moulders and other users, enabling it to maintain a dominant share of the Nigerian cement market, even amid fierce competition from rival producers.
