Dangote Cement Floats N50b Commercial Papers

Dangote Cement Plc, the largest listed company on The Nigerian Stock Exchange (NSE) and the leading cement conglomerate in Africa, recently issued new commercial papers to raise N50billion in new short-term capital.

This is the eighth to 10th series of its N150 billion CP programme. Nigeria’s biggest indigenous company will use the net proceeds to support its short-term funding.

Dangote Cement offered 90-day CP with effective yield of 12.5254 per cent and a discount rate of 10.51 per cent under its 8th series. The 9th series CP was a 180-day instrument with effective and discount yield of 12.5254 per cent and 13.35 per cent respectively. The 10th series CP was a longer tenor 270-day CP with effective and discount yield of 12.6862 per cent and 14.00 per cent respectively.

The 90-day CP is expected to mature on September 12, 2019 while the 180-day and 270-day CPs will mature on December 11, 2019 and March 10, 2020 respectively.

Application list for the offer had closed on June 13, 2019. Minimum subscription was N5 million and thereafter in multiples of N1,000. The CPs were allotted on the closure date, but were issued on June 14, 2019. The offer opened on June 7, 2019.

Dangote Cement has a rating of Aaa from Moody’s and AA+ from GCR. Dangote Cement recently indicated it invested $3 billion in its Pan-African operations.