Culled—Proshare

March 21, 2018

Bloomberg is reporting that Dangote Cement Plans to Sell $833m in bonds for expansion. The debt will be issued in tranches over next three years, says the Chief Financial Officer (CFO) and the company is also considering sale of Eurobonds to improve funding.

According to the source, Dangote Cement claimed to have got approval from Nigerian regulators to issue the $833m (N300bn) local currency bonds as it seeks to fund expansion and refinance debt.

The Chief Financial Officer (CFO) of the company Brian Egan made this known during an investor conference call on Tuesday. He further said the bond will be issued in tranches of 50 billion naira at a time whenever interest rates are favourable.

The building material company is also considering selling Eurobonds to boost its funding. Dangote is planning to spend $350 million on capital projects this year, including the building of export facilities at Nigeria’s seaports, which will see it begin shipments of clinker and cement to neighbouring West African countries, said the CFO.