Dangote Cement, one of the most capitalized stocks on the Nigerian Exchange Group, is currently offering the investing public Series 4 and 5 commercial papers offer up to N50 billion, under the ₦150 billion Commercial Paper Issuance Programme. The cement giant says the purpose of the offer is to fund working capital requirements and general corporate purposes, an investment advice sent to investors by ARM Securities has shown.
The offer opened on Monday 30 January 2023 and will close on Thursday 2 February 2023. Dangote Cement, majorly owned by Africa’s richest man, Aliko Dangote, is Sub Saharan Africa’s leading cement producer, with a combined capacity of 51.55 million tons per annum with 35.25 million tons per annum being produced in its plants in Nigeria while the balance is produced in ten other African countries.
Stanbic IBTC Capital Limited, ARM Securities, FSDH Capital, Quantum Zenith Capital and Investments act as arranger and dealers to the offer.
Stanbic IBTC Bank is the issuing, calculation and paying agent to the offer just as Stanbic IBTC Capital acts as the sponsor to the quotation on FMDQ.
Series 4 has a tenor of 183 days with a discount rate of 12.2045% and an implied yield of 13%. Series 5 of the offer has a tenor of 267 days with a discount rate of 12.6994% and an implied yield of 14%.
According to the investment advice note, the offers will mature on Wednesday 9 August 2023 and Wednesday 1 November 2023.
The offer s rated AA+ by the Global Credit Ratings(GCR) and A3.ng by Moody’s.
The minimum subscription is N5 million and a subsequent additions of N1 million thereafter.
Dangote Cement operates a fully integrated “quarry-to-customer” business with activities covering manufacturing, sales and distribution of cement. Through its investments, the Company eliminated Nigeria’s dependence on imported cement and transformed the nation into an exporter of cement, serving neighbouring countries.