Dangote Cement woos investors with N100bn bond issue

Dangote Cement woos investors with N100bn bond issue
Written by Maritime First

…As SEC warns: Ponzi scheme promoters to face the wrath of law***

Dangote Cement Plc, says it plans to raise up to N100 billion in fresh funds from the bond market, under its N300 billion Debt Issuance Programme.

The plan seeking to raise up to N100 billion was detailed in an investor presentation document prepared by the company themed: “Building Prosperity in Africa,” made available to newsmen on Sunday in Lagos.

According to the document, the funds from the debut offering in the bond markets are to be utilised  to refinance existing short-term debt previously applied toward cement expansion projects, working capital and general corporate purposes.

Also, the bond (medium-term debt paper), Dangote Cement is issuing for the first time, signifies confidence in business growth and in the Nigerian economy long term growth.

“Dangote Cement Plc is a good offer for discerning institutional investors and high networth individuals as it is Nigeria’s largest company by market capitalisation on the Nigerian Stock Exchange.

“Certain factors across Africa signal positive long term trends for Dangote Cement.

“There is an increasing demand for cement as urbanisation continues across the continent, demanding more infrastructure, housing, and commercial building.

“As democracy becomes entrenched in Africa, it brings increasing political stability, enabling rapid economic growth, growth in infrastructure such as roads, housing, schools, among others, built from cement.

“With steady population growth, younger and more mobile population drive the need for building, while the emerging middle-class, fuels increasing consumerisation and access to credit,” it stated.

Also read:  Dangote Group to launch N4trn fertilizer project in Nigeria soon

In the meantime, the Security and Exchange Commission (SEC) has warned that those who initiate and promote Ponzi schemes in Nigeria will face the consequences by being brought to the book.

Mrs Efe Ebelo, Head, Corporate Communication of SEC, in a statement, said the commission’s Acting Director-General, Ms Mary Uduk, gave the warning in Abuja on Sunday.

Uduk said the commission was stepping up its regulatory oversight to ensure that such illegal entities were sealed off quickly.

According to her, ponzi schemes are illegal and that is reason the commission keeps warning the public about the dangers of these outfits.

”Once we have information about anyone engaging in illegal fund management business, our enforcement department working with our police unit will shut them down.

”The promoters are handed over to the relevant law enforcement agencies for further actions,” she explained.

Uduk noted that the capital market had been properly positioned to attract Nigerians and other investors to provide benefits to those who invest in it.

She said that the commission had sustained its investor’s education programme to assist people to understand issues around the capital market.

The acting director-general said that some of the safest areas to invest in the market were in mutual funds and collective investment schemes.

Uduk noted that SEC was presently undertaking various initiatives to make the capital market more user-friendly such that people could participate with ease, comfort, and convenience.

”There is the added and all-important purpose of ensuring that the gains of your participation, be it dividends, proceeds from share sales/transfers accrue to you seamlessly, without sweat and in the shortest time possible.

”The purpose is also to ensure that investors do not fall victim to the antics of fraudsters who purport to be able to double any amount of money you make available to them as investment value.

”We want a deeper market and we believe that with these combinations, we will reduce the number of ponzi schemes coming up and reduce the number of investors putting their money into the schemes,” she said.

Ponzi scheme is prohibited by the provisions of Section 38(1) of the Investments and Securities Act (ISA) 2007.

It does not allow people that are not registered by SEC to collect money from the public.


About the author

Maritime First