Dangote Cement’s series 4&5 commercial paper worth N50 billion which was offered for sale on January 30, 2023 is expected to close today.
The debt instrument is being offered for sale under the company’s N150 billion commercial paper issuance programme according to the offer documents obtained by Naijaonpoint.
The issuance: Subscriptions to this tranche of commercial paper issuance by the cement giant opened Monday, 30 January 2023.
According to a statement seen by Naijaonpoint, the series 4 has a 183-days maturity period while the series 5 has 267-days tenure.
The six month paper comes with a discounted rate of 12.2045% while the nine month paper is 12.6994%.
The minimum subscription is N5 million and subsequent additions of N1 million.
Purpose of offer: The fresh capital is being sourced by the company to finance its short-term working capital requirements and general corporate purposes.
Dangote Cement is Sub-Saharan Africa’s leading cement producer, with a combined capacity of 51.55Mta (35.25Mta in Nigeria) across its operations in 10 African countries. It operates a fully integrated quarry-to-customer business with activities covering manufacturing, sales and distribution of cement.
Through its investments, the Company eliminated Nigeria’s dependence on imported cement and transformed the nation into an exporter of cement, serving neighbouring countries.
The backstory: Dangote Cement Plc had in 2021 announced the establishment of a new N150 billion Commercial Paper Programme (Commercial Paper).
Dangote Cement’s Deputy Company Secretary , Edward Imoedemhe, explained that the programme would allow the Company to broaden its funding sources and combine with it N300 billion multi-instrument issuance bond programme, increases access to capital market funding.
... Dangote Cement’s N50 billion series 4 & 5 commercial paper issuance closes today Read More on ... Naijaonpoint.