Capital: Dangote Cement To Raise N150bn Via Commercial Paper
Dangote Cement Plc (DCP) is to raise N150 billion fresh capital through the issuance of a Commercial Paper (CP). In a notification to the Nigerian Stock Exchange (NSE) yesterday, the biggest cement manufacturing firm in Africa, said the CP would be either as a standalone transaction or by a way of programme to be executed in tranches, series or proportions.
“The CP that will be issued under the programme will be deployed towards capital expenditure, working capital and general corporate purpose,” the company said in the notification signed the managing director, Joseph Makoju.
Market operators said this planned capital injection would further boost the performance of the company. Shareholders of DCP last week commended the board and management of the company for its improved profit and dividend payment performance for the 2017 financial year.
The company recorded a profit after tax of N204.2 billion in 2017, up by 43 per cent from N142.9 billion in 2016. Based on that improved bottom-line, the board recommended a dividend of N178.9 billion, which translated to N10.50 per share, up from N8.70 the previous year.
The shareholders of the company at the 7th annual general meeting (AGM) expressed excitement at the dividend, saying DCP had continued to create value for them, urging the board and management to maintain that impressive performance.
Chairman of DCP, Alhaji Aliko Dangote said the board believed that the recommended dividend was at an appropriate level and was consistent with the company’s aim of delivering superior returns to shareholders, while at the same time balancing the company’s need to invest in growth.
According to him, as a company, DCP was accorded international credit ratings that were actually higher on a standalone basis than the sovereign country of Nigeria.
“This recognition should assure you, our shareholders, that our long-term view and prudent management are serving us well at a time when others in our industry are facing difficulties that challenge their independence and only serve to erode shareholder value,” he said.
Also speaking, the Acting Chief Executive Officer of DCP, Joseph Makoju said he was pleased with the way the company adapted to marketing efforts to the challenges in the Nigerian economy in 2017.
Looking ahead, Makoju said the company would return to volume growth, particularly in Nigeria as the economy recovers and the higher oil price brings more cash into the country.
“We will continue to focus on improving sales and logistic so we are well prepared for when the market picks up, which we are confident it will in 2018 as infrastructure investment begins to accelerate,” Makoju said.
