Friday, April 23, 2021 05:22 PM / by Stanbic IBTC / Header Image Credit: Bloomberg
Stanbic IBTC is pleased to inform you that the book build for the Dangote Cement PLC ("Dangote Cement" or "DCP" or "the Issuer") Series 1, Tranche A, B and C 3-year, 5-year and 7-year Fixed Rate Senior Unsecured Bonds, under its NGN300 billion Debt Issuance Programme will open on Friday, 23 April 2021 and will close on Thursday, 29 April 2021.
Dangote Cement PLC is Nigeria's largest listed entity by market capitalization (NGN3.74 trillion as at 21st April 2021), as well as Sub-Saharan Africa's leading cement producer, with a combined installed capacity of 48.6Mta across its operations in 10 African countries. DCP operates a fully integrated "quarry-to-customer" business with activities covering manufacturing, sales and distribution of cement. DCP has a strong track record in the Nigerian debt capital markets, having successfully issued both short and long term debt. In April 2020, Dangote Cement issued a NGN100 billion 5-year fixed rate bond which was the largest corporate bond issuance in the history of the Nigerian Debt Capital Markets at the time. This Series 1 Fixed Rate Bond is the only corporate bond at AAA rating in Nigeria by GCR. In addition, DCP has also issued an aggregate NGN450 billion in Commercial Papers since 2018.
Dangote Cement is now looking to launch an offering in the bond markets and plans to utilize proceeds of the bond issuance to fund expansion projects, refinance existing short-term debt, and for general corporate purposes.
Dangote Cement is assigned a AAA long-term rating by GCR and Aa2.ng long-term rating by Moody's due to its position as one of the largest cement manufacturers in Nigeria and SSA. DCP has also consistently reported robust operating and net profit margins compared to its peers in Sub-Saharan Africa and in other jurisdictions. The Issuer has adequate working capital, satisfactory cash flow, and a very experienced management team. The Issuer is the first Nigerian corporate to receive the AAA issuer rating by GCR.
The price guidance range for the Series 1 bonds are 10.70% - 11.25%, 12.30% - 12.50% and 12.75% to 13.00% per annum for the Tranche A, B and C bonds respectively.
Other indicative terms of the offer are as presented below:
For more information, please refer to the documents listed below, which can be accessed through this LINK for your reference and appraisal of the opportunity:
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