DANGOTE CEMENT TO RAISE US$800m THROUGH CURRENCY BONDS

Dangote Cement Plc to raise US$800m from issuing Eurobonds

Africa’s largest producer of the building material, Dangote Cement Plc plans to raise N300 billion (US$833 million). Dangote Cement Plc have approval from the Securities and Exchange Commission (SEC) and other regulators to raise this fund through local currency bonds.

Dangote Cement, the most capitalized stock in the NSE wishes to use the fund for its expansion and also to refinance its debt.

According to Brian Egan, the company’s Chief Financial Officer, plans are to issue the debt over three years. The bond will be issued in tranches of N50 billion at favorable interest rates.

The company is also planning to sell Eurobonds to boost its funding.

Aliko Dangote, Africa’s richest man who controls the company plans to spend US$350 million on capital projects this year. This capital project includes building of export facilities at Nigeria’s seaports. The seaports will ship clinker and also cement to neighboring West African countries.