By Rukayat Moisemhe
Dangote Cement Plc, says it plans to raise up to N100 billion in fresh funds from the bond market, under its N300 billion Debt Issuance Programme.
The plan seeking to raise up to N100 billion was detailed in an investor presentation document prepared by the company themed: “Building Prosperity in Africa,” made available to newsmen on Sunday in Lagos.
According to the document, the funds from the debut offering in the bond markets are to be utilised to refinance existing short-term debt previously applied toward cement expansion projects, working capital and general corporate purposes.
Also, the bond (medium term debt paper), Dangote Cement is issuing for the first time, signifies confidence in business growth and in the Nigerian economy long term growth.
“Dangote Cement Plc is a good offer for discerning institutional investors and high networth individuals as it is Nigeria’s largest company by market capitalisation on the Nigerian Stock Exchange.
“Certain factors across Africa signal positive long term trends for Dangote Cement.
“There is an increasing demand for cement as urbanisation continues across the continent, demanding more infrastructure, housing and commercial building.
“As democracy becomes entrenched in Africa, it brings increasing political stability, enabling rapid economic growth, growth in infrastructure such as roads, housing, schools, among others, built from cement.
“With steady population growth, younger and more mobile population drive the need for building, while the emerging middle-class, fuels increasing consumerisation
and access to credit,” it stated.