Dangote Cement PLC, Africa’s largest cement producer has announced the issuance of 50 billion Series 1 and 2 Notes under its 150 billion Commercial Paper (CP) Programme, which was made public last week. The Notes will be listed on Nigeria’s FMDQ OTC Securities Exchange on July 19, 2018.
The cement maker noted in a statement that the funds raised from the CP Programme will be used for capital expenditure, working capital and general corporate purposes.
“It allows us to broaden our sources of funding and combine established bank lines of credit with access to capital market funding, which will lower our overall cost of borrowing,” said Joe Makoju, Group Chief Executive Officer at Dangote Cement.
Commercial Paper is a money-market security issued by large corporations which are able to leverage on their good credit ratings to obtain funds to meet short-term debt obligations, without collateral. Dangote Cement which posted a profit after tax (PAT) of N204 billion in 2017 is rated B1 with a stable outlook by Moody’s following a downgrade last November.
Dangote Cement’s CP programme is the largest ever issued by a Nigerian company.
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