In a move that underscores its commitment to sustainable growth and strategic financing, Dangote Cement Plc has listed its N38.2 billion 10-year fixed-rate senior unsecured bonds on the Nigerian Exchange Limited (NGX). This bond, which boasts an impressive annual coupon rate of 23.5%, is part of the company’s expansive N300 billion multi-instrument issuance program.
Dangote Cement, listing of the bond took effect on Thursday, March 20, 2025, and is structured as a senior unsecured bond. The 10-year instrument will mature on December 30, 2034, and will pay interest semi-annually. The bond was issued at a nominal value of N1,000 per unit, with a total volume of 38,198,800 units. Meristem Stockbrokers Limited arranged the bond, which trades under the symbol ‘23.5% DANGCEM DEC 2034’ and code DAN2034S1.
The proceeds from the bond will be applied towards refinancing existing debt and for working capital purposes. This move demonstrates Dangote Cement’s strategic approach to managing its finances and ensuring sustainable growth. By refinancing existing debt, the company can optimize its capital structure, reduce its cost of debt, and improve its financial flexibility.
The listing of the bond is expected to have a positive impact on the NGX, demonstrating the exchange’s capacity to facilitate large-scale transactions. The success of this bond issuance also underscores investor confidence in Dangote Cement’s creditworthiness and the Nigerian capital market’s resilience. The NGX has continued to provide a platform for companies to raise capital, and this listing is a testament to the exchange’s commitment to supporting the growth of Nigerian businesses.
Dangote Industries Limited had previously listed its N300 billion Series 1 and 2 bonds on the NGX and FMDQ, marking a significant milestone in the company’s financing strategy. This development highlights the company’s commitment to exploring innovative financing options to support its growth initiatives. The company’s ability to access the capital market demonstrates its strong credit profile and its ability to attract investors.
Dangote Cement’s commitment to sustainable growth is evident in its strategic approach to financing, operations, and corporate social responsibility. The company has continued to invest in its operations, expanding its capacity and improving its efficiency. Its commitment to corporate social responsibility is also evident in its support for local communities and its efforts to reduce its environmental impact.
The listing of Dangote Cement’s N38.2 billion 10-year bond on the NGX is a significant development in the Nigerian capital market. The bond’s success demonstrates investor confidence in Dangote Cement’s creditworthiness and the Nigerian capital market’s resilience. As the company continues to grow and expand its operations, its commitment to sustainable growth and strategic financing will remain essential to its success.