Dangote Cement Series 1 up to N100bn 5-year Under Its N300bn Bond Issuance Programme Now Open


Friday, April 03, 2020 11:16 AM / By Arthur Stevens Asset Mgt / Header Image Credit: @DangoteCement


We are pleased to inform you that the book build for the Dangote Cement PLC ("Dangote Cement" or "DCP") Series 1, up to NGN [100] billion 5-year Fixed Rate Senior Unsecured Bonds, under its NGN300 billion Debt Issuance Programme is now open and will close on Tuesday, 14 April 2020.


Related Link: Moody's Assigns Ratings to Dangote Cement Plc's DMTN Program and Proposed Series 1 Notes


Dangote Cement, Nigeria's largest company by market capitalisation on the Nigerian Stock Exchange, is the largest cement manufacturer in Sub-Saharan Africa with an installed capacity of 45.6Mta across its operations in 10 African countries. DCP operates a fully integrated "quarry-to-customer" business in 7 of its operations with activities covering manufacturing, sales and distribution of cement.


DCP has a strong track record in the debt capital markets, having registered a NGN150 billion Commercial Paper programme in 2018, and issued an aggregate amount of NGN300 billion in Commercial Paper since programme establishment. Dangote Cement is now looking to launch a debut offering in the bond markets and plans to utilize proceeds of the bond issuance to refinance existing short-term debt previously applied towards cement expansion projects, working capital and general corporate purposes.


Dangote Cement is assigned a AA+ long-term rating by GCR and Aa2.ng long-term rating by Moody's. DCP has also consistently reported robust operating and net profit margins compared to its peers in Sub-Saharan Africa and in other jurisdictions. DCP has adequate working capital, satisfactory cash flow, and a very experienced management team. The company is one of few corporates in Nigeria with a top notch rating of AA+. 


The price guidance range for the Issue is 12.25% to 12.50% per annum. This is reflective of the top credit quality of the issuer, whilst also offering a premium over subsisting inflation levels.  Other indicative terms of the offer are as presented below:

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