Dangote Cement Plans to Sell $833 Million in Bonds for Expansion … Debt will be issued in tranches over next three years – CFO … Company also considering sale of Eurobonds to improve funding

Dangote Cement Plc said it got approval from Nigerian regulators to issue N300 billion ($833 million) in local-currency bonds as it seeks to fund expansion and refinance debt.
Africa’s largest producer of the building material plans issue the debt over three years, Chief Financial Officer Brian Egan said during an investor conference call on Tuesday. The bond will be issued in tranches of N50 billion at a time whenever interest rates are favorable, said Egan.
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 neighboring 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, acting Chief Executive Officer Joe Makoju said on the call. Africa’s largest oil producer shows signs of recovering from a recession in 2016 after three straight quarters of expansion in gross domestic product, which the International Monetary Fundestimates will grow 2.1 per cent this year.
Source: Bloomberg

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