Dangote Cement has raised N116 billion from banks and high networth individuals to repay the cement business rising debt, as well as finance other company-related operation, IgbereTV reports
The firm, owned by Aliko Dangote, raised the capital from the bond market through Series 2 Bond issuance under the Company’s N300 billion MultiInstrument Issuance Programme.
According to a statement released on Wednesday, via the Nigerian Exchange Limited (NGX), the bond attracted funds from institutional investors, including pension funds, asset managers, banks, insurance companies and high networth individuals.
Ripples Nigeria gathered that part of the capital will be used to refinance short-term debt, fund expansion projects, and working capital requirements as well.
Dangote Cement’s total borrowings is placed at N564.94 billion as of December 2021, above the N483.11 billion loans it reported during the corresponding period. Most of the debt are from banks, bonds, commercial papers and more.
It was gathered that the Bond issuance “comprised three tranches: a 5-year Tranche A issuance priced at 11.85%, a 7-year Tranche B issuance priced at 12.35%, and a 10-year Tranche C issuance priced at 13.00%.” the statement reads.
The Bond issuance is the largest corporate bond issuance in the history of the Nigerian Capital Market
