Dangote Cement Plc wednesday disclosed that it has gotten approval from the Securities and Exchange Commission (SEC) and other regulators to raise N300 billion ($833 million) in local-currency bonds.
The company, which is the most capitalised stock on the Nigerian Stock Exchange (NSE) intends to utilise the fund on its expansion as well as to refinance its debt.
Africa’s largest producer of the building material plans issue the debt over three years, Bloomberg quoted its Chief Financial Officer, Brian Egan, to have said during an investor conference call on Tuesday.
The company, controlled by Africa’s richest man, Aliko Dangote, is also considering to sell Eurobonds to boost its funding, Egan said.
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.
The company said revenue for the year through December rose 31 per cent to N806 billion while net income rose 43 per cent to N204 billion. Sales volumes declined by seven per cent owing to a downturn in Nigeria, its biggest market, it said.
The company sees “higher volumes” this year as Nigeria’s economy recovers, its acting Chief Executive Officer Joe Makoju said.