Dangote Cement opens US$130m commercial paper offer

Dangote Cement is currently raising NGN60bn (US$130.7m) through the issuance of commercial paper, under its NGN150bn commercial paper programme, reports The Nigerian Observer. The offer opened on 3 March 2023 and will close on 7 March 2023. The funds raised will be used for working capital requirements and general corporate purposes, the company stated in the offer document.

The offer comes in two series - 6 and 7. Series 6 is a 181-day offer with a discount rate of 11.4310 per cent and an implied yield of 11 per cent. The Series 7 offer is a 265-day offer with a discount rate of 11.48 per cent and an implied yield of 12.5 per cent. The minimum subscription for the offer is NGN5m and a subsequent addition of NGN1m.

In full year 2022, Dangote Cement reported revenue of NGN1.618trn, compared to NGN1.383trn in the previous year. Gross profit for 2022 stood at NGN955.43bn, up from NGN832.61bn in 2021.