Dangote Cement Plc says it is planning to raise N150 billion by issuing commercial papers on FMDQ.
In a statement released by the company to the Nigerian Stock Exchange on Wednesday, the company said the capital raising will either be as a stand-alone transaction or be executed in tranches.
Joseph Makoju, the acting group chief executive officer of Dangote Cement, who signed the statement, said the proceeds will be deployed towards capital expenditure, working capital and general corporate purposes.
At the company’s annual general meeting which held on June 20, Makoju had announced the company’s intention of building new production lines in Obajana and Edo state.
“As it stands, I think we will focus on building new grinding plants along the coast of West Africa, and ensure we have clinker export facilities in Nigeria,” Makoju said.
“We are looking at the possibility of two new lines in Nigeria, perhaps by the end of 2020 and it is likely these will be in Edo state and Obajana, with a combined capacity of 6Mta.”
At present, the company is Africa’s largest cement producer with nearly 46Mta capacity.
It eliminated Nigeria’s dependence on imported cement and made the country an exporter of cement serving neighbouring countries.