Lagos, Nigeria — Dangote Cement Plc has opened its Series 17 and 18 Commercial Paper (CP) offer, offering up to N50 billion under its N300 billion Commercial Paper issuance programme. The offer, which began on Monday, December 16, will remain open until Thursday, December 19, 2024.
Dangote Cement, Sub-Saharan Africa’s largest cement producer, operates a fully integrated “quarry-to-customer” business across 10 African countries, including a combined capacity of 52 million tons per annum (Mta), with 35.3Mta of that capacity based in Nigeria. The company is known for its significant role in eliminating Nigeria’s dependence on imported cement, turning the country into a net exporter to its neighbors.
The net proceeds from this Commercial Paper issuance will be used to support Dangote Cement’s short-term financing needs and general corporate purposes, with the CPs set to be repaid from the company’s cash flows.
Solid Performance in 2024
Dangote Cement has demonstrated strong financial performance in 2024, reporting N2.5 trillion in revenue for the nine months ending September 2024, a 69.1% increase from N1.5 trillion in the same period of 2023. While sales in Nigeria saw a rise of 9.5%, sales from its Pan-Africa market declined by 1.6%.
The company also reported a slight increase in after-tax profit, which rose by 0.55%, reaching N279.09 billion from N277.5 billion in the previous year. Despite this profit growth, Dangote Cement faced a significant rise in cost of sales, which surged by 92%, from N642 billion to N1.2 trillion.
This Commercial Paper issuance forms part of the company’s strategy to manage its short-term financing requirements and maintain its strong position in the cement market across Africa.
