FMDQ Exchange Admits Dangote Cement PLC Series 1 Bond on its Platform
FMDQ Exchange Admits Dangote Cement PLC Series 1 Bond on its Platform
As a securities exchange with a commitment to facilitate growth and development in the Nigerian debt capital market (DCM) and the Nigerian economy at large, FMDQ Securities Exchange Limited (‘FMDQ Exchange’ or the ‘Exchange’) continues to show its commitment to promoting an efficient, transparent, and well-regulated market, which will attract and retain both domestic and foreign investors. It is in this regard that FMDQ Exchange approved the listing of the Dangote Cement PLC (‘Dangote Cement’ or the ‘Issuer’) ₦3.64 billion Series 1 (Tranche A), ₦10.45 billion Series 1 (Tranche B) and ₦35.91 billion Series 1 (Tranche C) Fixed Rate Bonds under its ₦300.00 billion Multi-Instrument Issuance Programme (the ‘Programme’) on its platform. This listing comes shortly after the successful registration of the Dangote Cement PLC ₦100.00 billion Commercial Paper Programme within the same period.
The Multi-Instrument Programme allows the Issuer to raise funds from the DCM through the issuance of various medium- to long-term debt securities such as green bonds, sukuk etc., which enables the Issuer leverage the depth and breadth of the Nigerian DCM. The proceeds from the Dangote Cement PLC Series 1 Tranches 1- 3 bonds will be used to fund expansion projects, refinance short-term debts, as well as working capital expenditure.
Commenting on the successful bond issuance, Mr. Michel Puchercos, Group Managing Director, Dangote Cement stated, “this bond issuance allows us move a step further in achieving our expansion objectives and will be deployed to projects instrumental in supporting our export strategy while improving our cost competitiveness. We thank the investor community for their continued support in the management of Dangote Cement and their successful participation in the bond issuance”.
Also commenting on the listing, the sponsor of the Bond and a Registration Member (Listings) of FMDQ Exchange, Absa Capital Markets Nigeria Limited, through its Chief Executive Officer, Mr. Sadiq Abu, commented that, “we are very pleased to have acted as Lead Issuing House on the transaction. The success of the issuance and positive investor response amidst market uncertainty is indicative of Dangote Cement’s strong credit profile and market positioning. We thank the Board and Management of Dangote Cement PLC for the opportunity to continue to support the Company in its fund-raising efforts”.
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