Coronation Merchant Bank appointed as joint issuing house for Dangote Cement Plc’s 5-year Fixed Rate Senior Unsecured Bonds

The book build for the Dangote Cement PLC Series 1, 5-year Fixed Rate Senior Unsecured Bonds, under its NGN300 billion Debt Issuance Programme is now opened.

We are pleased to inform you that the book build for the Dangote Cement PLC (“Dangote Cement” or “DCP”) Series 1, up to NGN [100] billion 5-year Fixed Rate Senior Unsecured Bonds, under its NGN300 billion Debt Issuance Programme, opens on Friday, 03 April 2020 and will close on Tuesday, 14 April 2020. 

Dangote Cement, Nigeria’s largest company by market capitalisation on the Nigerian Stock Exchange, is the largest cement manufacturer in Sub-Saharan Africa with an installed capacity of 45.6Mta across its operations in 10 African countries. DCP operates a fully integrated “quarry-to-customer” business in 7 of its operations with activities covering manufacturing, sales and distribution of cement.

DCP has a strong track record in the debt capital markets, having registered a NGN150 billion Commercial Paper programme in 2018, and issued an aggregate amount of NGN300 billion in Commercial Paper since programme establishment. Dangote Cement is now looking to launch a debut offering in the bond markets and plans to utilize proceeds of the bond issuance to refinance existing short-term debt previously applied towards cement expansion projects, working capital and general corporate purposes.

Dangote Cement is assigned an AA+ long-term rating by GCR and long-term rating by Moody’s. DCP has also consistently reported robust operating and net profit margins compared to its peers in Sub-Saharan Africa and in other jurisdictions. DCP has adequate working capital, satisfactory cash flow, and a very experienced management team. The company is one of few corporates in Nigeria with a top-notch rating of AA+. 

The price guidance range for the Issue is 12.25% to 12.50% per annum. This is reflective of the top credit quality of the issuer, whilst also offering a premium over subsisting inflation levels. Other indicative terms of the offer are as presented below.

Kindly find below a summary of the Bond  Issuance:


Dangote Cement PLC

Programme Size

NGN300 billion

Issue Size

Up to NGN[100] billion (with option to upsize)


Subject to demand and pricing, Issuer may allot up to NGN[300] billion of Bonds


Series 1 Fixed Rate Senior Unsecured Bonds

Issuer Rating

AA+ (GCR); (Moody’s)

Issue Rating

AA+ (GCR); (Moody’s)


5 years


Prevailing 5-yr Treasury Bond (FGN 23-March-2025)

Book Building Price Guidance

[12.25% - 12.50%]

Par Value / Issue Price

NGN1,000 per unit

100% of Par Value

Offer Open / Offer Close

Friday, 03 April 2020

Tuesday, 14 April 2020

Funding / Settlement Date

Friday, 17 April 2020

Day Count Fraction

Actual / Actual

Offer Mode

Offer for Subscription via Book Build

Coupon Basis

Fixed Rate, semi-annual

Units of Sale

Minimum of NGN10,000,000 (10,000 units at NGN1,000/unit) and multiples of NGN1,000 thereafter

Redemption / Payment Basis

Bullet repayment


FMDQ Securities Exchange and / or The Nigerian Stock Exchange

Use of Proceeds

Fund expansion projects, refinance existing commercial bank debt and for general corporate purposes

For further inquiries, contact:
Suru Daniels on 07032999560 or
Evelyn Akana on 08025420974 or and
Ngozi Kalu-Mba on 09094266733 or

For enquiries about this publication

Send an email to or visit our contact us page to send us a message.

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