Dangote Cement, one of the largest firms listed on the Nigerian Exchange Group, is currently raising N60 billion through the issuance of commercial paper, under its N150 billon commercial paper programme. The offer opened on March 3, 2023 and will close on Tuesday 7 March 2023.
Dangote Cement is Sub-Saharan Africa’s leading cement producer, with a combined capacity of 51.55Mta (35.25Mta in Nigeria) across its operations in 10 African countries. It 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 neighboring countries.
The fund which will be realised from this offer will be used to fund working capital requirements and for general corporate purposes, the company stated in the offer document. The offer is rated AA+ by Global Credit Rating (GCR), and Baa3.ng by Moody’s.
The offer comes in two series, 6 and 7. The Series 6 offer is a 181-day offer with a discount rate of 11.4310 percent and an implied yield of 11 percent. The Series 7 offer is a 265-day offer with a discount rate of 11.48 percent and an implied yield of 12.5 percent.
The minimum subscription for the offer is N5 million and a subsequent addition of N1 million.
In full year 2022, Dangote Cement realised N1.618 trillion as revenue which was an improvement over N1.383 trillion realised at the end of 2021. Gross profit for 2022 stood at N955.43 billion as against N832.61 billion in 2021.
Profit after tax in 2022 was N382.31 billion which was higher than N364.43 billion in 2021.
The cement giant has declared N20 per share as the final dividend.
“The directors pursue a dividend policy that reflects the company’s earnings and cash flow, while maintaining appropriate levels of dividend cover. They consider the capital needed to fund the company’s operations and expansion plans. For the 2022 financial year, the directors are pleased to recommend a dividend of ₦20.00 per ordinary 50 kobo share (2021: ₦20.00),” Dangote Cement announced early March 2023.