Dangote Cement Plc has moved to strengthen its short-term funding position with the launch of a N100 billion commercial paper offer, the opening tranche of its much larger N500 billion issuance programme. The offer opened for subscription on 17 November 2025 and closes on 19 November 2025, attracting attention across Nigeria’s fixed-income market as investors continue to seek stable corporate instruments with competitive yields.
The company structured the notes in two parts. The first is a 181-day paper offered at a 16.10 percent discount rate, giving an implied yield of about 17.50 percent at maturity. The second is a 265-day paper priced at a 16.70 percent discount rate, offering investors a return of roughly 19 percent. Market analysts note that these yields reflect the rising interest rate environment and the growing preference for high-grade corporate issuers capable of meeting near-term obligations.
Institutional investors remain the main target for this issuance, with a minimum subscription of N50 million and room for additional commitments in increments of N1,000. The structure is designed to accommodate pension funds, fund managers, banks and large corporates seeking secure short-duration placements backed by one of Nigeria’s most capitalised industrial groups.
Offer documents released during the subscription window confirmed that the proceeds will be channelled into working capital, an area critical to Dangote Cement’s nationwide operations and extensive supply chain. The company’s long history with commercial paper programmes suggests that it views the debt market as a reliable and flexible tool for managing operational liquidity without resorting to longer-term borrowing.
The new tranche also reinforces confidence in Nigeria’s corporate debt market. Investors often gravitate towards issuers with strong cash flow, proven creditworthiness and significant domestic relevance, qualities that have kept Dangote Cement’s debt instruments in steady demand over the years. Although detailed settlement and maturity schedules are contained in the internal deal documents shared with professional investors, the public programme information confirms that both tranches are structured along standard market conventions for corporate notes in Nigeria.
With this N100 billion issuance now completed, market watchers expect Dangote Cement to return periodically as it draws on the balance of its N500 billion programme. The company’s approach ensures it can continue to optimise its capital structure while giving investors dependable short-dated instruments in a market where strong corporate paper is consistently sought after.
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