Dangote Cement gets board’s nod to tap debt market

Dangote Cement Plc, Africa’s largest cement producter, has said it is contemplating debt funding options under its planned N300 billion bond issuance programme.

The company said it had obtained approval from its Board of Directors to access the capital market to support business growth and maximise available sources of its debt funding.

It said in a statement on Thursday that it had submitted an application to the Securities and Exchange Commission for the registration of a bond issuance programme.

Dangote Cement said, “Subsequent to obtaining regulatory approvals, the company intends to explore its medium to long-term debt funding options through the debt capital market, subject to favourable market conditions.

“When raised, the proposed funding will be used for capital expenditure of the company’s expansion projects, short-term debt refinancing, and working capital requirements.”

Dangote Cement, Nigeria’s biggest listed company by market capitalisation on the Nigerian Stock Exchange, has a combined installed capacity of 48.6 million tonnes per annum across its operations in 10 African countries, the statement said.