Dangote Cement plans N300bn bond issuance

Dangote Cement Plc has introduced plans to situation its Collection I bonds underneath its N300bn multi-instrument issuance programme.

This was contained in a current assertion by the corporate.

Dangote Cement Plc stated it has obtained approval from its Board of Administrators to entry medium to long-term debt funding from the home capital markets.

The proceeds of the bonds can be utilized in direction of refinancing current debt and for working capital functions.

It said, “Dangote Cement Plc has obtained approval of its Board of Administrators to entry medium to long-term debt funding from the home capital markets. The corporate had filed an utility with the Securities and Alternate Fee in respect of the bonds and related approvals have now been obtained.

“The bonds can be issued imminently, topic to beneficial market circumstances. The proceeds of the bonds can be utilized in direction of refinancing current debt and for working capital functions.”

In 9 months to September 30, Dangote Cement reported N2.5tn in income for the 9 months of 2024, largely fueled by elevated native market gross sales.

The corporate stated it had filed an utility with the Securities and Alternate Fee in respect of the bonds, and related approvals have now been obtained.

The most important cement maker stated the bonds can be issued imminently, topic to beneficial market circumstances.

In response to the cement consequence, its income grew by 69.1 per cent from N1.5tn reported in the identical interval of 2023 with Nigeria’s gross sales quantity rising by 9.5 per cent and Pan-Africa market gross sales declining by 1.6 per cent.

“Our monetary outcomes for the 9 months exhibit superior efficiency throughout key metrics, as we diligently execute our strategic priorities for the 12 months. Group volumes grew by 1.9 per cent year-on-year to twenty.7Mt, largely because of a major rebound in Nigeria,” stated Arvind Pathak, Chief Government Officer, Dangote Cement.

Dangote Cement’s earnings earlier than curiosity, taxes, depreciation, amortisation & impairment spiked by 37.10 per cent to N908.69bn as of September 2024 from N662.76bn as of September 2023.

A breakdown of figures exhibits Dangote Nigeria’s EBITDA rose by 37.25 per cent to N506.11bn whereas the Pan-African areas had been up 45.35 per cent to N170.01bn.

After-tax revenue in the course of the interval elevated by a single-digit 0.55 per cent to N279.09bn from N277.5bn.

An extra evaluation of the corporate’s assertion disclosed that within the first 9 months, the price of gross sales elevated by 92 p.c, rising to N1.2trn from N642 bn in the identical interval of 2023.