Dangote Cement Plc has announced the opening of its first tranche bond issuance worth up to N100 billion under a N300 billion multi-instrument issuance programme. The offer, which began on Monday, November 18, 2024, will close on Friday, November 22, 2024.
This move follows approval from the company’s Board of Directors to access medium to long-term funding from Nigeria’s domestic capital market. The proceeds are earmarked for refinancing existing debt and meeting working capital needs.
Dangote Cement, a leading cement producer in Sub-Saharan Africa with a combined capacity of 52 million tonnes per annum (Mta)—35.3Mta of which is based in Nigeria—has significantly contributed to Nigeria’s transformation from an importer to an exporter of cement across African markets.
In its nine-month financial results ending September 30, 2024, the company reported a 69.1% surge in revenue to N2.5 trillion, up from N1.5 trillion in the same period of 2023. The growth was driven by a 9.5% increase in Nigeria’s sales volume, offsetting a 1.6% decline in Pan-African sales.
Commenting on the results, Arvind Pathak, Chief Executive Officer of Dangote Cement, stated:
“Our financial results for the nine months demonstrate superior performance across key metrics, as we diligently execute our strategic priorities for the year. Group volumes grew by 1.9 percent year-on-year to 20.7 million tonnes, largely due to a significant rebound in Nigeria.”
Despite a modest 0.55% increase in after-tax profit to N279.09 billion from N277.5 billion, the company recorded a 92% rise in the cost of sales, which reached N1.2 trillion. Earnings before interest, taxes, depreciation, amortisation, and impairment (EBITDA) climbed 37.10% to N908.69 billion compared to N662.76 billion in the prior year.
Dangote Cement’s Nigeria operations contributed N506.11 billion to EBITDA, reflecting a 37.25% increase, while Pan-African operations recorded a 45.35% rise to N170.01 billion.
This bond issuance is expected to strengthen Dangote Cement’s financial position and enhance its capacity to meet strategic objectives in the construction and infrastructure sectors.
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