Dangote Cement PLC has announced that its Board of Directors has approved plans to raise medium- to long-term debt funding from the domestic capital markets to improve its financial structure and support ongoing operations.
The announcement, disclosed in a filing published on the Nigerian Exchange (NGX) platform on November 15, 2024, was signed by the company’s secretary, Edward Imoedemhe.
It confirmed that the company had submitted an application to the Securities and Exchange Commission (SEC) for the proposed bonds and obtained the necessary regulatory approvals.
The disclosure read:“Dangote Cement PLC (the ‘Company’) 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 filing further revealed that the Series 1 bonds, which are part of the company’s N300 billion multi-instrument issuance programs, will be issued soon, subject to favorable market conditions.
Proceeds from the bond issuance are earmarked for refinancing existing debt obligations and providing additional working capital to support the company’s operations and growth objectives.
A multi-instrument issuance program is a corporate debt strategy that allows a company to issue different types of financial instruments, including bonds, notes, commercial papers, and other securities, all within a single, organized framework.This approach has several benefits. It enables the company to diversify its funding sources by attracting a wider range of investors with different preferences.It also offers flexibility to customize the terms, maturities, and interest rates of each financial instrument to suit current market conditions and the company’s financial goals.
By leveraging such a program, companies can strategically manage their financing needs while optimizing costs and investor engagement.