Dangote Cement Plc, Nigeria’s largest cement producer, has announced plans to issue Series I bonds under its ₦300 billion multi-instrument issuance programme. The company confirmed it has secured approval from its Board of Directors to raise medium- to long-term debt from the domestic capital markets.
According to a statement from the company, the funds raised through the bond issuance will be used to refinance existing debts and for working capital needs. The application for the bonds has been submitted to the Securities and Exchange Commission (SEC), with approvals already received. The issuance is expected to proceed imminently, depending on market conditions.
The move comes as Dangote Cement reports a strong financial performance for the first nine months of 2024. Revenue rose by 69.1% to ₦2.5 trillion compared to ₦1.5 trillion during the same period in 2023. This growth was driven by a 9.5% increase in sales volume in the Nigerian market, although sales in Pan-African markets saw a slight decline of 1.6%.
The company also recorded a 37.1% increase in earnings before interest, taxes, depreciation, amortisation, and impairment (EBITDA), reaching ₦908.69 billion, up from ₦662.76 billion in the previous year. Net profit after tax grew marginally by 0.55% to ₦279.09 billion, reflecting the impact of higher operational costs. The cost of sales surged by 92%, hitting ₦1.2 trillion compared to ₦642 billion in the same period last year.
Commenting on the company’s performance, Dangote Cement’s CEO, Arvind Pathak, said: “Our financial results for the nine months demonstrate superior performance across key metrics, as we diligently execute our strategic priorities for the year. Group volumes grew by 1.9% year-on-year to 20.7 million tonnes, largely due to a significant rebound in Nigeria.”
The upcoming bond issuance underscores Dangote Cement’s commitment to financial restructuring and maintaining its position as a leader in the industry while supporting its ambitious expansion plans.