Dangote Cement (NGX:DANGCEM) has opened a NGN100bn ($69mn)
commercial paper issuance offering double-digit yields to support
working capital needs and refinance short-term obligations, marking
the first tranche of a NGN500bn ($345mn) programme.
The company, Nigeria’s largest cement producer and one of
Africa’s biggest manufacturing groups, operates integrated and
grinding plants across multiple countries supplying major
infrastructure and construction projects.
According to an offer document published on the FMDQ Exchange
website, Nigeria’s largest over-the-counter exchange, the sale
opened on November 17 and is scheduled to close on November 19.
The issuance consists of two series: a 181-day note with a
16.10% discount rate and a 17.50% yield, and a 265-day note
carrying a 16.70% discount rate and a 19.00% yield. The minimum
subscription is NGN50mn ($34,500), with additional amounts allowed
in multiples of NGN1,000 ($0.70), targeting institutional and
high-net-worth investors.
Financial results in recent years have supported investor
appetite for the company’s short-term debt. Revenue rose from
NGN1.03 trillion ($0.71bn) in 2020 to NGN3.58 trillion ($2.47bn) in
2024, while profit after tax increased from NGN276bn ($191mn) to
NGN503.25bn ($348mn). The figures place the group among Nigeria’s
most profitable corporates.
Performance strengthened further in the first nine months of
2025. Revenue reached NGN3.15 trillion ($2.17bn), compared with
NGN2.56 trillion ($1.77bn) a year earlier. Profit after tax more
than doubled to NGN743.3bn ($513mn) from NGN279.1bn ($193mn).
Operating cash flow rose to NGN1.29 trillion ($0.89bn) from
NGN532bn ($367mn), enabling the company to cut borrowings by 47% to
NGN1.32 trillion ($0.91bn) from NGN2.50 trillion ($1.73bn) at
end-2024 and lift its interest coverage ratio to 4.4.
Credit rating agencies have maintained broadly supportive views.
DataPro affirmed long-term AA and short-term A1 ratings,
citing strong earnings, brand strength and experienced management.
GCR Ratings lowered its assessment to A+(NG) from AA+(NG)
in October 2025, attributing the change to the “group-cap” effect
from parent company Dangote Industries Limited while noting
expectations for improved leverage metrics by year-end.
© 2025 bne IntelliNews, source Magazine
