Dangote Cement To Raise Debt To Fund Expansion
Dangote Cement Plc has secured the approval from Securities and Exchange Commission (SEC) to access the Capital Markets for medium to long-term debt funding..
Edward Imoedemhe, Deputy Company Secretary in a statement on Thursday said that the proceeds would be applied towards funding expansion projects, refinance existing short-term debt and for general corporate purpose
According to the Industrial giant, it submitted an application to the Securities and Exchange Commission (SEC) following the approval from its board to proceed with the bond issuance.
“The bonds will be issued imminently, subject to favourable market conditions..
In May 2021, Dangote Cement issued N50 billion Series 1 Fixed Rate Senior Unsecured Notes with varying coupon rates of 11.25, 12.50 and 13.50 per cent for the three, five and seven year tranches in that order under its N300 billion multi-instrument debt issuance programme.
Also, in August, it issued a debt worth N150 billion in commercial paper to meet obligations including working capital and “general corporate purposes,” bringing the total so far issued to N200 billion.
In total, Dangote Cement has issued an aggregate of N450 billion in Commercial Papers since 2018.
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