By Dipo Olowookere
One of the top cement makers in Nigeria, Dangote Cement Plc, may again approach the capital market to source fresh funds, a notice from the company disclosed.
In the disclosure filed to the Nigerian Exchange (NGX) Limited on Friday, the cement miller said proceeds from the exercise would be used to partly refinance its existing debt and run its business operations.
Business Post reports that Dangote Cement has a production capacity of 52 million tonnes per year (Mta) across Africa, making it the largest cement producer in Sub-Saharan Africa.
Its product is mostly preferred by block moulders and others, giving it the edge to control the cement market share in the country despite stiff competition from the other producers.
In the notice today, Dangote Cement said it intends to access the local capital markets for the first tranche of its N300 billion multi-instrument issuance programme.
This exercise has the authorisation of the Securities and Exchange Commission (SEC), the agency in charge of the Nigerian capital market.
However, the cement manufacturer did state when it plans to sell the debt instrument to investors.
“Dangote Cement 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.
“The proceeds of the bonds will be applied towards refinancing existing debt and for working capital purposes,” the statement said.