198
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL
STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER, 2016
Group Company
24. Financial liabilities
Unsecured borrowings at amortised cost
Subordinated loans (Note 24(a))
Loans from Dangote Industries Limited
Bulk Commodities loans
Loans from Dangote Oil Refinery Company
Secured borrowings at amortised cost
Power intervention loan (Note 24 (b))
Bank loans
Total borrowings at 31st December
Long-term portion of loans and borrowings
Current portion repayable in one year and
shown under current liabilities
Overdraft balances
Short-term portion
Interest payable
Financial liabilities (short term)
31-Dec-16
₦’million
29,998
46,097
9,794
130,000
215,889
12,496
128,080
140,576
356,465
152,475
197,698
6,292
203,990
16,310
220,300
31-Dec-15
₦’million
29,989
146,200
657
-
176,846
14,661
53,462
68,123
244,969
208,329
33,693
2,947
36,640
10,635
47,275
31-Dec-16
₦’million
29,998
46,097
1,004
130,000
207,099
12,496
42,683
55,179
262,278
86,182
176,096
-
176,096
16,174
192,270
31-Dec-15
₦’million
29,989
146,200
657
-
176,846
14,661
16,411
31,072
207,918
181,384
26,534
-
26,534
10,635
37,169
(a) A subordinated loan of ₦55.4 billion was obtained by the Company from Dangote Industries
Limited in 2010. ₦30 billion was long-term and the remaining balance was short term and is
repayable on demand. The long-term loan is unsecured, with interest at 10% per annum and is
repayable in 3 years after a moratorium period ending 31st March, 2017. The interest on
waived for 2011. Given the favourable terms at which the Company secured the
the
term
portion was
loan, an amount of ₦2.8 billion which is the difference between the fair value of the loan on initial recognition
and the amount received, has been accounted for as a capital contribution.”
(b) In 2011 and 2012, the Bank of Industry through Guaranty Trust Bank Plc and Access Bank Plc granted the
Company the sum of ₦24.5 billion long-term loan repayable over 10 years at an all-in annual interest rate of 7%
for part financing or refinancing the construction cost of the power plants at the Company’s factories under
the Power and Aviation Intervention Fund. The loan has a moratorium of 12 months. Given the concessional
terms at which the Company secured the loan, it is considered to have an element of government grant. Using
prevailing market interest rates for an equivalent loan of 12.5%, the fair value of the loan is estimated at ₦20.7
billion. The difference of ₦3.8 billion between the gross proceeds and the fair value of the loan is the benefit
derived from the low interest loan and is recognised as deferred revenue. The facility is secured by a debenture
on all fixed and floating assets of the Company to be shared pari passu with existing lenders.
long
198
Annual Report 2016
199
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