Dangote Cement has announced plans to issue its Series I bonds under a N300bn multi-instrument programme to refinance debt and boost working capital.

[dropcap]D[/dropcap]angote Cement Plc has announced plans to issue its Series I bonds as part of its N300 billion multi-instrument issuance programme.

This decision follows the approval of its Board of Directors, who have given the green light to access medium to long-term debt funding from Nigeria’s domestic capital markets.

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The company revealed that the proceeds from the bond issuance will be used for two key purposes: refinancing existing debt and supporting its working capital requirements. The bonds are set to be issued imminently, contingent on favourable market conditions.

This move comes after Dangote Cement’s impressive financial performance in the first nine months of 2024. The company reported a revenue of N2.5 trillion, a significant increase from the N1.5 trillion reported in the same period in 2023.

This surge was primarily driven by a 9.5% rise in local sales within Nigeria, though Pan-African market sales saw a slight decline of 1.6%.

Arvind Pathak, the CEO of Dangote Cement, commented on the results: “Our financial results for the nine months demonstrate superior performance across key metrics, as we diligently execute our strategic priorities for the year.”

The company also reported a 1.9% year-on-year growth in group volumes, reaching 20.7 million tonnes, largely attributed to a robust recovery in Nigeria.

The company’s earnings before interest, taxes, depreciation, amortisation, and impairment (EBITDA) saw a remarkable 37.10% increase, reaching N908.69 billion by September 2024, compared to N662.76 billion during the same period in 2023.

This growth was driven by a 37.25% increase in EBITDA from Dangote’s Nigerian operations and a 45.35% rise from its Pan-African regions.

Despite the strong revenue and EBITDA growth, Dangote Cement’s after-tax profit showed a modest increase of 0.55%, from N277.5 billion in 2023 to N279.09 billion in 2024.