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Financials NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER, 2016 17.7 Change in the Group’s ownership interest in a subsidiary There was no change in the Group’s ownership interest in its subsidiaries from the prior year. However, additional subsidiaries were incorporated in Nigeria and Ghana during the year. 17.8 Significant restrictions There are no significant restrictions on the Company’s or its subsidiaries’ ability to access or use its assets to settle the liabilities of the Group. 17.9 Financial support to consolidated structured entities During the year, the Company provided financial support to its subsidiaries for capital development and/or for operational purposes. Assistance rendered was always in the form of funds transferred to them for the normal running of their operations or on their behalf to vendors/contractors for settlement of commitments. As part of the requirements of the Syndicated Term Loan of R1.95bn facility from Nedbank Capital and Standard Bank of South Africa for the finance of the Group’s South African plant in 2012, the Company extended an interest bearing subordinated loan to Dangote Cement South Africa (Pty) Limited to the tune of R265 Million as a guarantee to help access the remainder of its loan with Nedbank/Standard Bank. This loan is expected to be repaid in two tranches at an interest rate of Johannesburg Inter-Bank Agreed Rate (JIBAR) plus 4% per annum but in order for the Company to fulfil this, it entered into a contractual obligation with Zenith Bank Plc. to avail a credit facility for a Term Loan to be on lent to Dangote Cement South Africa (Pty) Limited. The loan has a quarterly interest rate payment of 6% per annum and is expected to have a bullet repayment of the principal upon maturity which is 48 months from the date the loan was advanced. In addition, the loan has been secured by a debenture over fixed and floating assets of Dangote Cement Plc. All financial support given on behalf of the subsidiaries have been accounted for as receivables from subsidiaries and eliminated on consolidation. The table below shows the financial support given to major subsidiaries by the Company during the year: 2016 2015 Dangote Cement Ghana Limited Dangote Cement Senegal S.A Dangote Industries (Zambia) Limited Dangote Cement Cameroun S.A Dangote Industries (Ethiopia) Plc Dangote Industries Limited, Tanzania Dangote Cement (Sierra Leone) Limited Dangote Cement Congo S.A Dangote Cement Cote D’Ivoire S.A Dangote Industries Gabon S.A Dangote Cement Liberia Ltd. ₦’million 506 129 1,260 1,457 4,836 10,179 1,092 10,834 5,045 - 57 35,395 ₦’million 568 1,503 3,713 3,826 13,352 19,780 486 12,616 839 2 123 56,808 The Group management has continued to show its intention to provide financial support to its subsidiaries and to assist, when necessary, any subsidiary to obtain financial support in the future and does not envisage any material risk as a result of this. Interest charged to the subsidiaries on the advances extended to them during the year was between 5% to 10% per annum. Annual Report 2016 193

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