NSE admits N100bn Dangote Cement bonds
The Nigerian Stock Exchange has listed Dangote Cement Plc’s N100bn, five years 12.50 per cent fixed rate series 1 senior unsecured bonds due 2025 under the N300bn debt issuance programme.
The NSE, in a statement by the Head, Listings Regulation Department, Godstime Iwenekhai, said the bonds were 100 per cent subscribed.
Dangote Cement recently announced the successful issuance of N100bn bonds, which it said was 1.5 times oversubscribed.
Book building with respect to the issuance commenced on April 3, 2020 following the approval from the Securities and Exchange Commission and closed on April 15, 2020 at a coupon rate of 12.50 per cent.
The company said the transaction enabled it to lower its average cost of debt and extend the av¬erage maturity of its debt.
The Chief Executive Officer, Dan¬gote Cement, Michel Puchercos, while com¬menting on the bond issu¬ance, said, “This landmark transaction is the largest ever bond issuance by a cor¬porate issuer in Nigeria.
“It allows us to further broad¬en our sources of funding by accessing long-term debt at competitive costs from the capital market and builds further on the suc-cess of our domestic commercial paper programme.
“The success of this transaction, in the current challenging environment, illustrates investors’ con-tinuous confidence in Dangote Cement’s strategy, strong cash generation and solid credit profile.”