Dangote Cement Plc plans to take 300 billion naira ($833 million) in local-currency bonds to the market, as it looks to refinance its debt and support expansion.
Confirming this during an investor conference call on Tuesday, Chief Financial Officer Brian Egan noted that publicly-traded multinational company intends to issue the debt over the next 3-year period in tranches of 50 billion naira at a time, depending on how favorable interest rate would be.
Having received approval from Nigerian regulators, the subsidiary of Dangote Industries Limited is deliberating on selling Eurobonds to aid funding, Egan revealed. Dangote Cement is investing several billion dollars to build manufacturing plants and import terminals across Africa.
Included in Dangote’s plan for this year is to invest around $350 million on capital projects such as building export facilities at Nigeria’s seaports that would see to the movement of consignments of clinker and cement to neighboring West African countries.
Other Dangote plans are for integrated or grinding plants in Cameroon, Ethiopia, Republic of Congo, Liberia, Senegal, South Africa, Tanzania, Kenya and Zambia, as well as Ivory Coast and Ghana, and import/packing facilities in Ghana and Sierra Leone. It has also plans for installing a cement plant in Nepal.
Dangote Cement’s revenue for the year through December witnessed a 31 percent increase to 806 billion naira; while net income saw a 43 percent increase to 204 billion naira. However, sales volumes weakened by 7 percent due to a downturn in its biggest market–Nigeria, the company said.
Acting Chief Executive Officer Joe Makoju informed Bloomberg that the company projects higher returns this year as Africa’s biggest economy recovers.