By Aliyu Galadima
Dangote Cement Plc has announced plans to issue its Series I bonds under its N300bn multi-instrument issuance programme. This was contained in the company’s notice to the Nigerian Exchange Limited
This development follows the approval of the bond issuance by the company’s Board of Directors and the receipt of necessary regulatory approvals from the Securities and Exchange Commission (SEC).
The company stated that the bonds would be issued imminently, contingent on prevailing market conditions. The proceeds from the issuance are earmarked for strategic purposes, including the refinancing of existing debt and supporting the company’s working capital requirements, ensuring its operational and financial stability.
The statement reads, “Dangote Cement Plc has obtained approval of its Board of Directors to access medium to long-term debt funding from the domestic capital markets. The Company had filed an application with the Securities and Exchange Commission in respect of the bonds, and relevant approvals have now been received.
“The bonds will be issued imminently, subject to favourable market conditions. The proceeds of the bonds will be applied towards refinancing existing debt and for working capital purposes”.
Dangote Cement highlights its commitment to leveraging the domestic capital markets to access medium- to long-term debt funding. This move aligns with the company’s strategy to optimize its capital structure while maintaining robust financial health and supporting its long-term growth objectives.
The bond issuance comes at a time when the Nigerian capital market continues to show resilience, offering opportunities for corporates to secure funding through innovative financial instruments.
