- Dangote Cement Raising Another N50bn
Dangote Cement, Africa’s largest cement manufacturer, has announced plans to raise another N50 billion from the money market to support its short term funding needs.
The fundraising is part of Dangote Cement’s 150 billion Commercial Paper Programme started earlier this year.
A Commercial Paper is a money-market, debt financing security issued by large companies to meet short-term debt obligations. It is often offered in the short term, usually not exceeding 270 days and is backed only by an issuing bank or company promise to pay the face amount on the maturity date specified on the note.
The details of the commercial paper showed its in series, 11, 12, and 13.
The 11th series has a 90-day tenor with a yield of 13.25 percent discounted at 12.83 percent and it will mature on October 10th, 2019.
While the series 12 carries 180 days tenor with an effective yield of 13.5 percent at a discounted rate of 12.65 percent. It will mature in January 2020.
The Series 13 has a longer tenor of 270 days with 14.00 percent yield and a discount of 12.69 percent. It is expected to mature on the 7th of April 2020.
The new offer opened on Tuesday with a minimum subscription of N5 million and subsequently in multiples of 1000. It is expected to close today, the 11th of July, 2019.
Moody’s, global rating agency, rated the paper Aaa.