Dangote CP programme gets first bite with N50bn Series 1, Series 2 notes

The first bite of the commercial paper issuance programme of a total value of N150 billion has been announced by Dangote Cement PLC. This first bite is coming in the form of Series 1 and Series 2 Notes valued at N50 billion, according to a statement issued by the company.

The company, Africa’s largest cement manufacturer had announced the programme on June 27, creating expectation in the debt market with what is the largest commercial paper issuance by a Nigerian company.

“This landmark transaction is the largest-ever Commercial Paper issuance by a corporate issuer in Nigeria. It allows us to broaden our sources of funding and combine established bank lines of credit with access to capital market funding, which will lower our overall cost of borrowing.

“The success of this programme reflects the high quality of our business and its strong cash generation, made possible by our market-leading positions in Nigeria and across Sub-Saharan Africa, where demand for cement is growing rapidly,” said Joe Makoju, group chief executive officer of Dangote.

According to the company, the Series 1 and 2 Notes will be listed on Nigeria’s FMDQ OTC Securities Exchange on July 19, 2018. It said sunds raised in the Commercial Paper (CP) Programme will be used for capital expenditure, working capital and general corporate purposes.

Dangote Cement was advised by Stanbic IBTC Capital Limited as sole arranger and dealer, Stanbic IBTC Bank PLC as issuing calculation and paying agent, Banwo & Ighodalo as legal counsel and Deloitte as auditors to the issuance.