Dangote Cement Bolsters Capital Arsenal with N60.01bn Commercial Papers Listing on FMDQ Exchange

Dangote Cement has listed two series of commercial papers under its N300 billion issuance programme on the FMDQ Exchange.

The cement giant is set to raise approximately N3.42 billion and N56.59 billion through Series 10 and 11, respectively.

This financial maneuver follows Dangote Cement’s successful fund-raising exploits in 2023, wherein the company issued Series 8 and 9 of the Commercial Papers on July 17, accumulating N32.95 billion and N50.33 billion, respectively.

The current listing under Series 10 and 11 aims to mobilize a total of N60.01 billion, marking another significant stride in the corporation’s financing strategies.

Commercial papers, short-term debt instruments frequently employed by corporations, serve as pivotal tools to address immediate financial obligations such as payroll, accounts payable, and inventories.

The move by Dangote Cement aligns with the company’s proactive approach to financial management and reflects broader trends in the market.

This development echoes the larger landscape of the debt capital market in Nigeria, which witnessed an upswing in commercial paper issuance throughout 2023.

Afrinvest’s Full Year Review and 2024 outlook highlighted a notable increase in the value of new CP issuances, reaching N900 billion, up from N670 billion in the previous year.

The surge in commercial paper listings on the FMDQ Exchange is attributed to the efforts of corporate institutions to secure alternative financing avenues amid a challenging economic environment.

Dangote Cement’s latest listing not only underscores its commitment to financial resilience but also contributes to the broader narrative of companies navigating economic uncertainties through strategic financial instruments.

As Dangote Cement forges ahead with its commercial paper listing, market analysts will closely observe the impact of this financial move on the company’s liquidity, operational flexibility, and overall financial performance.