Dangote Cement Plc, Africa’s largest cement producer, has announced the issuance of N50 billion Series 1 and 2 Notes under its N150 billion Commercial Paper Programme.

A news report on Wednesday by African Press Organisation (APO) Group on the transaction indicated that the Series 1 and 2 Notes would be listed on Nigeria’s FMDQ OTC Securities Exchange on 19th July 2018.

According to the company’s management, funds raised in the Commercial Paper (CP) Programme will be used for capital expenditure, working capital and general corporate purposes.

Commenting on the investment venture, the company’s Group Chief Executive Officer, Mr. Joseph Makoju, said that the transaction enabled the company to broaden its funding sources and help to lower its overall cost of borrowing.

He explained: “This landmark transaction is the largest-ever Commercial Paper issuance by a corporate issuer in Nigeria. It allows us to broaden our sources of funding and combine established bank lines of credit with access to capital market funding, which will lower our overall cost of borrowing.

“The success of this programme reflects the high quality of our business and its strong cash generation, made possible by our market-leading positions in Nigeria and across Sub-Saharan Africa, where demand for cement is growing rapidly”, Makoju added.

In the transaction, Stanbic IBTC Capital Limited acted as Sole Arranger and Dealer while Stanbic IBTC Bank PLC as Issuing Calculation and Paying Agent to the company. Banwo & Ighodalo served as Legal Counsel and Deloitte acted as Auditors to the Issuer.