The President Dangote Group of Companies, Alhaji Aliko Dangote has liquidated a $1.27 billion loan facility he took on behalf of his organisation from a consortium of 10 Nigerian banks in May 2008 to finance its cement division’s expansion projects five years ahead of schedule. The banks involved in the loan syndication were Access Bank, Afribank, Bank PHB, FCMB, Fidelity Bank, First Bank, Guaranty Trust Bank, Stanbic IBTC, United Bank for Africa, and Zenith Bank.
Alhaji Dangote disclosed the liquidation at a presentation of the cheques to the banks at Ibese cement plant in Ogun State, adding that Dangote Cement intends to crash the price of a bag of cement to N1,000 when the production from its cement companies in the country reaches 20 million metric tonnes by the first quarter of 2011.

Terms of the loan indicates repayment schedule of seven years while the first payment was scheduled to commence in August 2010, with the last payment scheduled in 2015. Dangote said the loan was acquired in 2008 for the purpose of expanding the second phase of the largest cement plant in sub-Saharan Africa, located in Obajana, Kogi State, and to kick start the cement plants in Ibese and Senegal.

“We are pleased to repay the loan in a record time of five and a half years ahead of schedule. We are glad that our bankers have confidence in our group by granting us this massive loan facility to expand our business. We are proud to repay them in 20 months. The loan was acquired to expand the second phase of the largest cement plant in sub-Saharan Africa, located at Obajana,Kogi State, as well as to kick-start the cement plant at Ibese, Ogun State and Senegal.

“The projects, when completed, would bring a total production output of Dangote Cement in the Nigerian market to 20 million metric tonnes per annum by the first quarter of 2011. By the same period, the output from Zambia, Senegal and Ghana would be 4.5 million metric tonnes per annum, making the group’s African market output 24.5 million metric per annum. This will make Dangote Cement the second largest cement manufacturer in Africa after Lafarge and among the top 12 in the world,”

He further said the group has so far invested $3.5 billion in cement expansion projects in Nigeria and across the continent, out of which only $1.27 billion was sourced from a consortium of 10 Nigerian banks while the balance was from cash flow generated by the group.

He added that with the increased production from the company’s plants across Africa, the desire of Nigerians to see the price of cement come down to N1,000 per bag would become a reality.

“We have decided to put our money where our mouth is, with the aim of making Nigeria’s economic development a reality. At this crucial moment of our history, destiny demands that we play a critical role in job creation, developing skills, and boosting our Gross Domestic Product. We know the challenges are enormous, but with the support of all our stakeholders and our friends here, we are confident of making further historic milestones this decade,” Dangote said.


http://www.economicconfidential.com/x/index.php?option=com_content&view=article&id=109:economic-confidential&catid=7:monetary&Itemid=7

debosky, thank you for doing the honourable thing.

I thought he said he never took a loan?

Dangote is the king of loans. From what i gather he paid off just a fraction of the loan and got a mega loan from one bank to buy out the debt from the previous creditors. Thats just the way of big business these days i guess

CAN SOMEONE ASK DANGOTE FOR ME WHY WE WERE ALL NOT CALLED FOR OBAJANA CEMENT TRAINING PROGRAM FOR OND HOLDERS,
WE DID THE APTITUDE TEST, ORAL INTERVIEW AND WENT THROUGH ALL THE NECESSARY PROCEDURES BUT NON OF US WERE EMPLOYED FOR THE TRAINING PROGRAM JUST AS WE WERE PROMISED.

IMAGINE TRAVELLING FROM LAGOS TO LOKOJA TWICE JUST FOR NOTHING SAKE?

angelo5uk:

CAN SOMEONE ASK DANGOTE FOR ME WHY WE WERE ALL NOT CALLED FOR OBAJANA CEMENT TRAINING PROGRAM FOR OND HOLDERS,
WE DID THE APTITUDE TEST, ORAL INTERVIEW AND WENT THROUGH ALL THE NECESSARY PROCEDURES BUT NON OF US WERE EMPLOYED FOR THE TRAINING PROGRAM JUST AS WE WERE PROMISED.

IMAGINE TRAVELLING FROM LAGOS TO LOKOJA TWICE JUST FOR NOTHING SAKE?

info@dangote-group.com

but he just got another loan with standard chartered,

1) did he get more favourable terms for the Standard chartered loan (interest rates)

2) is it a matter of using another banks money to pay another bank

3) What is the fuss about him making the repayment early or not, (did he plan not to pay the money initially)

4) As an industralist, he should have been able to use that money in another sector of his business (maybe yes, maybe no)

As much as i appreciate him payin back d loan, why would he do dat 5 years ahead of d due time? Wia did he get d money 4 d repayment? Why makin noise abt it?

You repaid your debt well ahead of the stipulated time & u're making noise about it? Na wa o!

You repaid your debt well ahead of the stipulated time & u're making noise about it? Na wa o!

Haha Dangote, Dangote, good man 5 yrs before due date, haba, u r  a businessman we admire, arguably though. I mean where's the business sense? borrowing  from Stanbic to pay off another.

Besides thats a continuous debt circle, now more banks will form a consortiom and give him all the money meant to develop small and medium enterprise knowing he will REPAY ofcourse before its due, Wo na them them jare,

Why organise a party with full coverage by all major news organisations just because you're paying back a loan? Did he organise  a similar party when he was taking the loan? As there are no functional credit rating agencies in Nigeria and credit is given just on perception, Is Dangote scheming for a new mega loan (multiples of what he has just paid) and this is just a stunt to pull wool over bankers eyes and create the impression of high credit worthiness for Dangote? While he is at this stunt, why not fully pay up his other loans now too?

Hahaahaa, some 9ja ppl jus make me laugh!!, cos i dnt see d biggy in al diss, Dis is business mann!!!!

Dangote is a thief!
I don't understand why he's known as the richest man in Africa
He should be called the biggest poser we have around in Africa.

better

mama-gee:

Dangote is a thief!
I don't understand why he's known as the richest man in Africa
He should be called the biggest poser we have around in Africa.

Dangote is simply one of Nigerian's finest business man, why you dey call am theif, him thief your thing

Dangote is a thief!
I don't understand why he's known as the richest man in Africa
He should be called the biggest poser we have around in Africa.

u know u dont have to contribute to every thread mama-gee
u are not making sense here

paddy_lo:

u know u dont have to contribute to every thread mama-gee
u are not making sense here

Has Mama-Gee ever made sense? thats the question

Call Dangote any name, it's ur opinion. But one thing I know about that man, He made money in Nigeria & also invest the money in Nigeria thereby creating employement for thousands. So I count him better than many Nigerian billionians who fast forwarded the country's wealth abroud leaving many youth in abject poverty. My opinion though.

Dangote wanted to change for better,he manipulated the price of cement to that level,if he choose to bring the price down now,Allah will help him do it with sincerity of mind.Ask for the price of cement per bag on the net worldwide,then we will know if the price you are talking about is reasonable enough.

semid4lyfe:

You repaid your debt well ahead of the stipulated time & u're making noise about it? Na wa o!

He had to make noise because he was breaking a record in loan repayment. He was to start paying back the loan with effect from August 2010 to span for 5 years ie 2015. He paid up all the loan even before it was to be due for repayment.

An indication that even though cement manufacturing is capital intensive, its actually a money spinner. One needs to visit Obajana to see how trucks of cement are rolling out with ease everyday.

He is still expanding the factory to increase capacity by 50% and paying off a huge loan at thesame time.

Its also a message to Sanusi that he is paying up his loans

This guy has really impacted on the economy of the nation and still expanding. He should be appreciated and supported.

symbolic:

He had to make noise because he was breaking a record in loan repayment. He was to start paying back the loan with effect from August 2010 to span for 5 years ie 2015. He paid up all the loan even before it was to be due for repayment.

An indication that even though cement manufacturing is capital intensive, its actually a money spinner. One needs to visit Obajana to see how trucks of cement are rolling out with ease everyday.

He is still expanding the factory to increase capacity by 50% and paying off a huge loan at thesame time.

Its also a message to Sanusi that he is paying up his loans

This guy has really impacted on the economy of the nation and still expanding. He should be appreciated and supported.

Nigerian journalists will never cease to amaze you with their ignorance and sycophancy. How can refinancing a debt be something that is so celebrated.
I'm not a finance expert but I believe what this guys has simply done is to get a more favourable loan from Standard Chartered and use the money to pay off the harsh loans from our local banks. This is what any sensible business man will do.

I hope they don't go advertise this on CNN too.

symbolic:

He had to make noise because he was breaking a record in loan repayment. He was to start paying back the loan with effect from August 2010 to span for 5 years ie 2015. He paid up all the loan even before it was to be due for repayment.

An indication that even though cement manufacturing is capital intensive, its actually a money spinner. One needs to visit Obajana to see how trucks of cement are rolling out with ease everyday.

He is still expanding the factory to increase capacity by 50% and paying off a huge loan at thesame time.

Its also a message to Sanusi that he is paying up his loans

This guy has really impacted on the economy of the nation and still expanding. He should be appreciated and supported.

Sanusi sure heard it loud and clear

^^ lol!

I wonder what this whole thing is all about. since when did people start making loan repayments public? This our country is heading towards the wrong direction and its our job to save her.

Sanusi went after them in the public, So he went out too to send a message across to Sanusi, am sure he heard him well and clear, He cannot refute it, even if he got another one from another bank, it is just the bank that trusts him and a bank that Sanusi cannot go after. Shi kenan.

Fluid.:

Call Dangote any name, it's your opinion. But one thing I know about that man, He made money in Nigeria & also invest the money in Nigeria thereby creating employement for thousands. So I count him better than many Nigerian billionians who fast forwarded the country's wealth abroud leaving many youth in abject poverty. My opinion though.

I hail my man, Dangote is thief cos he comes and NL no Northerner is seen as worth anything no matter how glaring the truth is, at least provided job for southners not like Iboris, Odilis Obasanjos, etc who flee with our money abroad. NL be objective for once!

silami:

I hail my man, Dangote is thief cos he comes and NL no Northerner is seen as worth anything no matter how glaring the truth is, at least provided job for southners not like Iboris, Odilis Obasanjos, etc who flee with our money abroad. NL be objective for once!

this man what is your problem, nobody mentioned where he was from, abi you wan start another tribal war fo here, i guess u are not being objective with your reasoning by bringing in tribal differences here

Good job to Mr. Dangote but I must comment that this story somehow is missing key details,

I read somewhere sometimes few months ago that Mr. Dangote couldn't continue the expansion of this same cement factory because the FG removed the ban on cement importation as well as the import dues and taxes giving rise to cement importation. They couldnt compete with imported brand because the govt wouldn't give them subsidies so they decided to cancel the project. Long story short lets do some analysis.

This loan was taken out in 2008 assuming it was taken out in Jan 2008, that's precisely 2years the loan was taken out. So, using comparative logic,  what is the turn around time from the time the loan was disbursed upon till the time time it was actually used for the expansion implementation?  Also, lets look at from the time the expansion was actually finished till the time it actually starts operating and start yielding, matures  and is able to pay itself off. I mean using timeline and if basic math permits me, we are talking about 8 months or less time, so someone is telling me it took him 8months to payback a scheduled $1.27 billion loan which had been financially projected by analyst to be payed of in 5years with everything being equal (best case scenario). Did we forget that we were in a recession period, there was a little bit of inflation in the monetary markets probably making the loan a lil undervalue from its worth right now.

I would assume what happened here, his loan was undervalued, together with FG policies on cement, he decide to return the loan rather now with a with an early repayment penalty so it looks like he used it, but in the actual business sense it was returned back to the banks and wasn't used. Better yet, he refinanced his debt to reduce the interest rate and extend his payment term making it flexible for him.

Me I no know OH. Can you eat eba with two hands at the same time?
Collect from standard Chartered and pay other creditors? Anyway, the
important thing is that jobs are being created.