Dangote Cement to Issue Series I Bonds Under N300bn Multi-Instrument Programme
Dangote Cement Plc has announced plans to issue its Series I bonds as part of its N300bn multi-instrument issuance programme.
The company disclosed this development in a recent statement, noting that its Board of Directors has approved accessing medium to long-term funding from the domestic capital markets.
Purpose of the Bond Issuance
According to the statement, proceeds from the bonds will be used to:
- Refinance existing debts.
- Support working capital needs.
The statement 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 favourable market conditions.”
Strong Financial Performance in 2024
In its financial report for the nine months ending September 30, 2024, Dangote Cement recorded a revenue of N2.5tn, a 69.1% increase compared to N1.5tn in the same period of 2023.
Key highlights from the report include:
- Local Market Growth: Nigeria’s sales volume rose by 9.5%.
- Pan-African Sales Decline: Pan-African market sales dropped by 1.6%.
The company’s Chief Executive Officer, Arvind Pathak, commented:
“Our financial results for the nine months demonstrate superior performance across key metrics, as we diligently execute our strategic priorities for the year. Group volumes grew by 1.9% year-on-year to 20.7Mt, largely due to a significant rebound in Nigeria.”
Profit and Earnings Growth
Key financial metrics for the nine months include:
- EBITDA: Earnings before interest, taxes, depreciation, amortisation, and impairment rose by 37.10% to N908.69bn from N662.76bn in 2023.
- Nigeria EBITDA increased by 37.25% to N506.11bn.
- Pan-African regions saw a 45.35% growth to N170.01bn.
- After-Tax Profit: Grew marginally by 0.55%, reaching N279.09bn compared to N277.5bn in 2023.
Cost of Sales Surge
During the same period, Dangote Cement’s cost of sales rose significantly by 92%, from N642bn in 2023 to N1.2tn in 2024.
With a focus on strategic expansion and optimizing operations, Dangote Cement continues to strengthen its market position while pursuing favorable opportunities in the debt market.
