Dangote Cement to generate $700m forex

Dangote Cement Plc, yesterday, said its cement terminals being constructed in Lagos State and Onne in Rivers would be concluded before the end of this year and would generate about $700 million in foreign exchange. 

Aliko Dangote 

Alhaji Aliko Dangote, the company’s Chairman, said this while addressing shareholders at the 10th Annual General Meeting (AGM) of the company in Lagos. 

He explained that the terminals, which were delayed by equipment suppliers, would rake in the amount annually through cement exportation to sub-Saharan African countries. He said that the company would be opening export facilities within the terminals to export  clinker  to its existing facilities both in Cameroun and other African countries. 

He stated: “Later in 2019, we will open export facilities in Lagos and Port Harcourt that will enable us export clinker initially to our grinding facility in Cameroun and then to new grinding plans we are building in West Africa. “Not only will these generate useful foreign currency for Dangote Cement to support other expansion projects outside of Nigeria, they will also help to increase the output of our Nigerian plants.” 

He said that the company would be exporting cements through the terminals to Ghana, Cameroun, Sierra Leone and Congo, among others. 

On the dividend, he said that the dividend payment represented 52.4 per cent increase over the  N10.50 per share paid in 2017. 

The company declared a total dividend of N272.6 billion, which translated to N16 per ordinary 50k share, a 52.4 percent increase over the N10.50 paid in 2017. Meanwhile, the company has issued N50 billion Commercial Papers (CP) in order to meet short term financial obligations. The exercise, which is the second of its kind in barely three weeks, represents the eight to the tenth series of the company’s N150 billion CP programme. It will be recalled that subscription for the fifth, sixth, and seventh series closed on 24th May, 2019. 

The eight series of the commercial paper has a tenor of 90 days with an effective yield of 12.5254 per cent discounted at 10.51 per cent with a maturity date of 12 September 2019. The ninth series, however, has a 180-day tenor with an effective yield of 12.5254 percent and a discount rate of 13.35 percent with a maturity date of 11 December 2019. 

The tenth series, which offers CP of 270 days with an effective yield of 12.6862 percent, and a discount of 14 percent, is expected to mature on the 10th of March 2020.