Dangote Cement Plc has listed three tranches of bonds worth N116 billion on the Nigerian Exchange (NGX), paving the way for the bondholders to trade on them.
The bonds were issued under the company’s N300 billion multi-instrument debt issuance programme.
The listed bonds included N4.27 billion five-year 11.85 per cent fixed rate senior unsecured bonds due 2027, the N23.34 billion seven-year 12.35 per cent fixed rate senior unsecured bonds due 2029 and the N88.4 billion 10-year 13.00 per cent fixed rate senior unsecured bonds due 2032. The bonds were issued and listed at a par value of N1000 each.
According to the listing, the three bonds were issued on April 27, 2022 and will thus mature April 30, 2027; April 30, 2029 and April 30, 2032 respectively.
The bonds were offered to qualified institutional investors and high net worth investors through a book building method, a process of order-based accrual of subscriptions.
Dangote Cement is sub-Saharan Africa’s largest cement producer with an installed capacity of 45.6 metric tonnes per annum across 10 African countries. It operates a fully integrated “quarry-to-customer” business with activities covering manufacturing, sales, and distribution of cement.
Dangote Cement has a long-term credit rating of AA+ by GCR and Aa2.ng by Moody’s due to its position, significant operational scale and strong financial profile evidenced by the company’s operating and net profit margins relative to regional and global peers, adequate working capital, satisfactory cash flow and low leverage.
Key extracts of the audited report and accounts of Dangote Cement for the year ended December 31 2021 showed that turnover rose from N1.03 trillion in 2020 to N1.38 trillion last year. Nigeria’s contribution to group sales increased from N719.95 billion in 2020 to N993.3 billion last year. Other African operations contributed N397.32 billion in 2021 as against N318.68 billion in 2020.
The group sales volume stood at 29.3 metric tonnes, with Nigeria accounting for 18.61 metric tonnes while operations in other countries contributed 10.86 metric tonnes. Gross profit stood at N538.37 billion while net profit after tax closed 2021 at N364.44 billion.
Source: The Nation
