In a fresh move to strengthen liquidity, Dangote Cement Plc has reopened activity in the domestic debt capital market with a N100 billion commercial paper (CP) issuance. Investment-banking sources told MarketForces Africa that the offer is being floated under the company’s existing N500 billion CP programme registered with regulators.
According to offer documents, the issuance spans Series 1 and Series 2 notes. Proceeds will be channelled toward working-capital needs as the cement giant manages input-cost pressures and operational expansion across its African footprint.
Series 1 carries a 181-day tenor, offered at a 16.1026% discount rate, equivalent to a 17.50% annualised yield. Series 2, with a 265-day maturity, is priced at a 16.6968% discount rate, translating into a 19% implied yield. Subscription for both series is scheduled to close on November 19.
Analysts say the pricing reflects current money-market conditions and sustained demand for high-grade corporate paper, particularly from issuers with strong cash-flow generation and a long operating track record.
Dangote Cement remains Sub-Saharan Africa’s largest cement producer, boasting 55 Mtpa in installed capacity—35.3 Mtpa of which is in Nigeria—across operations in 11 countries. The group runs an integrated “quarry-to-customer” model encompassing extraction, manufacturing, sales, and distribution.
Industry observers note that the company’s expansion strategy has helped eliminate Nigeria’s dependence on imported cement and repositioned the country as a net exporter to neighbouring markets.