Dangote Cement Moves to Borrow Money From Nigerians, Promises to Repay With Interest
- Dangote Cement has begun offering about N100 billion in bonds under its N300 billion issuance programme
- The company stated that the bonds would be applied to refinancing existing debt and working capital purposes
- Dangote Cement is the largest cement manufacturer in Sub-Saharan Africa, with 52 metric tons per annum across 10 African countries
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
The first part of Dangote Cement Plc's bond offer of about N100 billion under its N300 billion multi-installment issuance programme has opened and will close on Friday, November 22, 2024.
The cement company obtained the approval of its Board of Directors to access medium to long-term debt financing from the domestic markets.
Source: UGC
Dangote Cement is Africa’s largest cement maker
The company stated that the bonds would be applied to refinancing existing debt and working capital purposes.
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In the first nine months of 2024, the cement manufacturer reported revenue of N2.5 trillion, caused by increased local market sales.
Dangote Cement is the largest cement manufacturer in Sub-Saharan Africa, with 52 metric tons per annum across 10 African countries.
The company operates an integrated quarry-to-consumer business model with activities covering manufacturing, sales and cement distribution.
Dangote Cement’s financial statement
According to the company’s report, it eliminates Nigeria’s dependence on imported cement via investments and transforms the nation into an exporter.
The company’s nine financial results show its revenue surged 69.1% to N1.5 trillion in 2024.
The cement maker disclosed that its financial results for the nine months show superior performance across critical metrics as it executes strategic priorities for the year.
Its group volumes grew by 1.9% annually to 20.7 metric tons due to a significant sales rebound in Nigeria
An analysis of figures shows that Dangote Cement’s EBITDA increased by 37.25% to N506.11 billion, while the Pan-African regions rose by 45.35% to N170.01 billion.
A further analysis of the firms’s statement shows that in the first nine months of 2024, sales costs grew 92%, up from N642 billion in 2023 to N1.2 trillion in 2024
Its earnings before interest, taxes, depreciation, amortisation and impairment (EBITDA) increased by 37.10% to N908.69 billion as of September 2024 from N662.76 billion in 2023.
Dangote's board of directors approves
Legit.ng previously reported that the cement company received the Board of Directors’ approval to access medium to long-term debt funding from the domestic capital markets.
The bonds’ proceeds will refinance existing debt and working capital.
In the first nine months of 2024, the cement company reported N2.5 trillion in revenue via increased sales in the local markets.
Dangote, Lafarge, BUA announce massive revenue in 2024
Legit.ng earlier reported that Nigeria's three top cement manufacturers had reported a combined N3.62 trillion in revenue in the first nine months of 2024 (January to September).
The amount represents a 69.4% increase from the N2.13 trillion combined revenue reported by the companies in 2023.
The cost of a 50kg bag of cement was between N8,000 and N10,000, up from approximately N4,000 it was priced when the year started.
Proofreading by James, Ojo Adakole, journalist and copy editor at Legit.ng.
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Source: Legit.ng
