Dangote Cement Plc, Africa’s largest Cement manufacturer has obtained the approval of its Board of Directors to access the capital market for a medium-term debt funding under its N300bn bond registration programme.
The cement firm in a statement obtained from the Exchange said it intended to issue its maiden series of bonds (series 1 bonds), subject to obtaining regulatory approvals and favourable market conditions.
“The process of obtaining requisite approvals from the Securities and Exchange Commission for issuance of the series 1 bonds has begun. The management of the DCP has disclosed that the proceeds of the series 1 bonds will be used to refinance existing short-term debt previously applied towards cement expansion projects, working capital and general corporate purposes. Book building for the series 1 will commence following approval of the transaction by SEC,” the statement signed by the Deputy Company Secretary, Edward Imoedemhe, said.
Dangote Cement Plc has posted a profit after tax of N200.521bn for the financial year ended December 31, 2019 as against a profit of N390.325bn posted in 2018, representing a drop of 48.63 per cent.
Profit before tax stood at N250.479bn from N300.806bn posted in 2018, accounting for a drop of 16.73 per cent. Revenue was N891.674 as against N901.213bn in 2018.
Dangote cement in a report obtained from Reuters last Wednesday said its export volumes in 2019 had been affected by border closure in its home country of Nigeria, trying to combat smuggling.
Nigeria closed its land border in August to curb smuggling of rice and arms, which it said threatened efforts to boost local production and security and to generate state revenues through import duties, the Nigeria Customs Service said.