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NSE admits N100bn Dangote Cement bonds



Michel Puchercos, dangote cement, NSE, bond

The Nigerian Stock Exchange has listed Dangote Cement Plc’s N100 billion, five years 12.50 per cent fixed rate series 1 senior unsecured bonds due 2025 under the N300 billion debt issuance programme.

The NSE, in a statement by Godstime Iwenekhai, the Head, Listings Regulation Department, said the bonds were 100 per cent subscribed.

Dangote Cement recently announced the successful issuance of N100 billion bonds, which it said was 1.5 times oversubscribed.

Book building with respect to the issuance commenced on April 3, 2020 following the approval from the Securities and Exchange Commission (SEC) and closed on April 15, 2020 at a coupon rate of 12.50 per cent.

Dangote Cement said the transaction enabled it to lower its average cost of debt and extend the average maturity of its debt.

Michel Puchercos, the Chief Executive Officer, Dangote Cement, while commenting on the bond issuance, said, “This landmark transaction is the largest ever bond issuance by a corporate issuer in Nigeria.

“It allows us to further broaden our sources of funding by accessing long-term debt at competitive costs from the capital market and builds further on the success of our domestic commercial paper programme.

“The success of this transaction, in the current challenging environment, illustrates investors’ continuous confidence in Dangote Cement’s strategy, strong cash generation and solid credit profile.”

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