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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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