Dangote Cement Plc, is
planning to raise N150 billion in new debt capital to finance its business
operations.
The N150 billion debt
capital is coming barely a week after the company announced the payment of
N178.9 billion cash dividend to shareholders for the 2017 business year.
The company said the new
capital raising would be done through the issuance of commercial papers.
Africa’s largest cement
producer, Dangote Cement Plc, is planning to raise N150 billion in new debt
capital to finance its business operations.
A debt capital is a capital
that a business raises by taking out a loan. The legal implication is that the
interest on debt capital must be repaid in full before any dividends are paid
to any equity holders.
Engr Joseph Makoju, Group
Managing Director, Dangote Cement Plc, made this known in a regulatory filing
on Wednesday, June 27, 2018.
Makoju said the new capital
raising would be done through the issuance of commercial papers, whether as a
standalone transaction or by way of a programme to be executed in tranches,
series or proportions.
The company said the net
proceeds from the issuance would be used to finance capital expenditure,
working capital and general corporate purposes.
This is coming barely a
week after the approval of the dividend recommendation at the annual general
meeting in Lagos where shareholders of Dangote Cement Plc received a dividend
per share of N10.50, representing an increase of 23.5% on a dividend per share
of N8.50 paid for the 2017 business year.
The Cement company paid a
total of N178.9 billion cash dividend to shareholders for the year ended
December 31, 2017.
Similarly, Aliko Dangote,
at the AGM, announced that about N121 billion was spent by the company under
the Dangote Group for the backward integrated project of the sister's company,
Dangote Sugar.
The fund was spent on
equipment, land acquisition, compensation to landowners, consultancy and
related services.
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