Dangote Cement N116bn Unsecured Bonds Rated AA+(NG) with Stable Outlook
GCR Ratings has assigned a national scale long-term issuer rating of AA+ (NG) to Dangote Cement Plc.’s N116 billion series 2 tranches A, B and C senior unsecured corporate bonds with outlook accorded as stable.
The net proceeds from the Bonds were said to be utilised for the company’s expansion projects in Nigeria, refinancing of short-term debts and working capital funding, according to the rating note. READ: Dangote Cement Completes N116bn Unsecured Bonds Issuance
Dangote Cement Plc, Africa’s leading integrated cement manufacturer and top member of Nigeria’s cement oligarch, has a combined installed capacity of 48.6 million tonnes per annum across ten countries.
GCR said it revised the cement company’s national scale long-term rating to AA+(NG) in April 2022, from AAA(NG) previously, and affirmed the short-term rating at A1+(NG), with the outlook accorded as stable.
The rating note explained that this followed the review of Dangote Industries Limited, the parent company, which created a group ratings cap at the AA+(NG).
Recall that the cement company registered a N300 billion Multi-Instrument Bond Programme with the Securities and Exchange Commission in May 2021, and subsequently raised an initial N50 billion in Series 1 (Tranches A-C) Senior Unsecured Bonds Issue.
GCR said that Dangote Cement Plc has now raised an additional N116 billion in Series 2 fixed rate senior unsecured bonds issued under the programme.
The capital raised tranche A at 11.85% for N4.269 billion, with a tenor of five years, and maturity in April 2027. Also, the cement company gets N23.335 billion from tranche B priced at 12.35%, with a tenor of seven years, and maturity in April 2029,
From tranche C, the company raised N88.396 billion, with a tenor of ten years, and maturity in April 2032 priced at 13%.
The stable outlook reflects GCR’s view of Dangote Cement Plc.’s robust earnings and strong cash flows, which serve to moderate the impact of any external shocks. # Dangote Cement N116bn Unsecured Bonds Rated AA+(NG)
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