FMDQ OTC lists Dangote Cement N50b Commercial Paper on its platform

FMDQ OTC Securities Exchange on Thursday listed Dangote Cement Plc N50 billion Series 1 and Series 2 commercial paper notes on its platform.

FMDQ OTC Securities Exchange on Thursday listed Dangote Cement Plc N50 billion Series 1 and Series 2 commercial paper notes on its platform.
The News Agency of Nigeria reports that the N12.04 billion and N37.96 billion Series 1 and Series 2 listed was part of Dangote Cement N150 billion Commercial Paper notes programme.
Commercial paper is an unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories and meeting short-term liabilities.
Speaking at the quotation ceremony in Lagos, Joseph Makoju, the Group Chief Executive Officer, Dangote Cement, said that the transaction was very significant for the company.
Makoju said the landmark transaction was the largest-ever commercial paper issuance by a corporate issuer in Nigeria.
He said: “Dangote is by far the largest company listed on this exchange; this transaction is a milestone for us.”
Makoju who commended FMDQ for the milestone, said that Dangote Cement was happy to list the biggest CP on its platform.
He commended FMDQ for organising the listing ceremony, noting that the exchange had significantly contributed to the development of the domestic debt capital market.
The chief executive officer said that FMDQ had championed development in the form of CP issuance in the debt capital market.
He said that the platform had promoted transparency, governance, integrity, and efficiency in the CP market.
Makoju said that the platform had succeeded in encouraging issuers to explore alternative funding source on the Nigerian capital market.
According to him, the listing signaled progression from what we are used to which bank is funding now to access new source of funding.
He said: “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.”
Makoju said that the listing was N50 billion dual issuance under the N150 billion CP programme established by the company recently.
He said that the success of the transaction was a proof of investors’ confidence in the company and signified the company’s financial strength.
According to him, funds raised from the CP will be used for capital expenditure, working capital and general corporate purposes.
Makoju added that the success of the programme reflected the quality of the company’s business and strong cash generation made possible by Dangote Cement market-leading positions in Nigeria and across Sub-Saharan Africa.
Bola Onadele, the Managing Director, FMDQ OTC Securities Exchange, described the event as a special occasion for the company and the history of the country.
He said that Dangote would issue more credible papers on the company’s platform in the nearest future.
Onadele said: “The size is significant but what is more important actually is the corporate benchmark that is lacking in Nigeria.”
He said the company which would be five years in November,  had achieved a lot of credible milestones.
Onadele said that the role FMDQ intends to play in the capital market ecosystem was to become an agent of change in the market and advocate for government.
He said that the company would continue to provide price transparency in all the issues listed on its platform.

Comments