We are pleased to inform you that the  Series 1, 2 and 3 Commercial Paper issuance (“CP or the “Issuance”), under the recently established Dangote Cement PLC (“Dangote Cement”) NGN150 billion CP Issuance Programme is now open and scheduled to close on Wednesday, 24 November 2021.

Dangote Cement PLC is Africa’s leading cement producer, with a combined installed capacity of 48.6Mta across its operations in 10 African countries. Dangote Cement operates a fully integrated “quarry-to-customer” business with activities covering manufacturing, sales and distribution of cement. Dangote Cement has a strong track record in the Nigerian debt capital markets, having successfully issued both short and long term debt.

Dangote Cement is assigned a AAA long-term rating by GCR and Aa3.ng long-term rating by Moody’s due to its position as one of the largest cement manufacturers in Nigeria and Sub-Saharan Africa. Dangote Cement has also consistently reported robust operating and net profit margins compared to its peers in Sub-Saharan Africa and in other jurisdictions. The Issuer has adequate working capital, satisfactory cash flow, and a very experienced management team. The Issuer is the first Nigerian corporate to receive the AAA issuer rating by GCR.  

Please see below, the indicative terms of the proposed offer.

 

Issuer:

Dangote Cement PLC

Arranger and Dealer:

Stanbic IBTC Capital Limited

Target Size:

Up to NGN50billion

Series:

1

2

3

Tenor:

90-days

180-days

270-days

Discount Rate (%):

8.3255%

8.6175%

9.3112%

Implied Yield (%):

8.5000%

9.0000%

10.0000%

Offer Open Date:

Wednesday, 18 November 2021

Offer Close Date:

Wednesday, 24 November 2021

Allotment Date:

Wednesday, 24 November 2021

Funding Date:

Friday, 26 November 2021

Maturity Date:

Thursday, 24 February 2022

Wednesday, 25 May 2022

Tuesday, 23 August 2022

Use of proceeds:

To fund short-term working capital requirements and for general corporate purposes

Issuer Rating:

AAA (GCR); Aa3.ng (Moody’s)

Minimum Subscription:

NGN5 million

Tax Consideration:

Free and clear of withholding taxes