Dangote Cement Plc has announced plans to launch its Series I bonds as part of a broader N300 billion multi-instrument issuance programme. This significant step was revealed in a formal statement submitted to the Nigerian Exchange Limited, underscoring the company’s ongoing efforts to harness domestic financial markets for long-term growth.
The move comes following the approval of the bond issuance by Dangote Cement’s Board of Directors and the necessary green light from the Securities and Exchange Commission (SEC). According to the company, these bonds are set to be issued in the near future, provided that market conditions remain favorable.
The proceeds from this issuance are expected to serve strategic objectives, such as refinancing existing debt and bolstering the company’s working capital. This financial maneuver is designed to enhance Dangote Cement’s operational stability and maintain a strong financial foundation.
The company noted that this issuance is part of its commitment to utilizing the domestic capital market to access medium- to long-term debt funding. By doing so, Dangote Cement aims to optimize its capital structure and support sustainable growth. This initiative reflects a strategic approach to managing its finances while positioning itself to navigate potential economic shifts effectively.
The official statement from Dangote Cement read: “Dangote Cement Plc has obtained approval of its Board of Directors to access medium to long-term debt funding from the domestic capital markets.
The Company had filed an application with the Securities and Exchange Commission in respect of the bonds, and relevant approvals have now been received. The bonds will be issued imminently, subject to favorable market conditions. The proceeds of the bonds will be applied towards refinancing existing debt and for working capital purposes.”
This strategic issuance comes at a time when the Nigerian capital market continues to demonstrate resilience, providing fertile ground for companies to secure capital through innovative financial instruments.
Dangote Cement’s move reflects a keen understanding of the current financial landscape and underscores its confidence in the market’s capacity to support corporate growth.
By tapping into domestic markets, Dangote Cement is set to bolster its financial health and sustain its leadership in the industry. The initiative also positions the company to continue investing in operational efficiencies and long-term projects, ensuring that it remains well-equipped to meet market demands and expand its footprint in the competitive cement industry.
