Dangote Industries completes Nigeria’s largest corporate bond issuance worth N187.6bn 

By Onome Amuge

Dangote Industries Limited (DIL), one of Africa’s leading, diversified and fully integrated conglomerates, has announced the successful completion of its N187.6 billion Series 1 Bond Issuance, the largest corporate bond ever issued in the history of the Nigerian capital market.

The landmark transaction represents the company’s first issuance at group level and comprises a 7-year Tranche-A bond issued at 12.75 percent and a 10-year Tranche-B bond issued at 13.50 percent, under the newly established N300 billion debt issuance programme.

The bond issuance was well received by the market and recorded participation from a wide range of investors including domestic pension funds, asset managers, insurance companies and high net-worth investors.

DIL, also known as Dangote Group, said it plans to utilise the net proceeds from the Series 1 bond issuance to part-finance the Dangote Petroleum Refinery Project, an Integrated Petrochemical Complex, and the largest single train petroleum refinery in the world.

Standard Chartered Capital & Advisory Nigeria Limited acted as the lead issuing house and bookrunner on the transaction, while Meristem Capital, Stanbic IBTC Capital, Vetiva Capital, Absa Capital Markets, Afrinvest Capital, Coronation Merchant Bank, Ecobank Development Company, FBNQuest Merchant Bank, FCMB Capital Markets, Greenwich Merchant Bank, Quantum Zenith Capital, Rand Merchant Bank Nigeria and United Capital acted as joint issuing houses.

Olakunle Alake, group managing director of Dangote Industries, who commented on the significance of the transaction, expressed the company’s delight to have successfully conducted its debut issuance under its newly established debt issuance programme.

“We are very pleased to have set this remarkable milestone, showcasing the depth and liquidity of the Nigeria debt capital market. The success of this transaction further demonstrates investor confidence in our credit story and the appreciation of the work done by the Group across several key sectors that are crucial to the development of the continent,” he noted.

Alake further disclosed that the proceeds from the landmark transaction will be used to part-finance the Dangote Petroleum Refinery Project which is the initiative by the Group to establish the largest refinery in Africa, thus positioning Nigeria as a net exporter of refined crude.

In his remarks, Olukorede Adenowo, Standard Chartered’s executive director for corporate, commercial and institutional banking, Nigeria & West Africa, said, “On behalf of the Issuing Houses, we are proud to have led this historic transaction which reflects the strong credit quality of the issuer as well as the resilience of the Nigerian domestic debt capital markets, despite the current global market volatility.”

Adenowo further commended the board and management of the Dangote Group for continuously striving to develop the domestic debt capital markets and setting records through its various issuances both at the subsidiary and Group levels.

He also thanked the Securities & Exchange Commission (SEC), Nigerian Exchange Limited (NGX) and FMDQ Securities Exchange Limited (FMDQ) for their unwavering support throughout the entire process.

According to a statement obtained by Business A.M, the bond notes will be listed on the Nigerian Exchange Limited and FMDQ.

ngote Industries completes Nigeria’s largest corporate bond issuance worth N187.6bn

Onome Amuge

Dangote Industries Limited (DIL), one of Africa’s leading, diversified and fully integrated conglomerates, has announced the successful completion of its N187.6 billion Series 1 Bond Issuance, the largest corporate bond ever issued in the history of the Nigerian capital market.

The landmark transaction represents the company’s first issuance at group level and comprises a 7-year Tranche-A bond issued at 12.75 percent and a 10-year Tranche-B bond issued at 13.50 percent, under the newly established N300 billion debt issuance programme.

The bond issuance was well received by the market and recorded participation from a wide range of investors including domestic pension funds, asset managers, insurance companies and high net-worth investors.

DIL, also known as Dangote Group, said it plans to utilise the net proceeds from the Series 1 bond issuance to part-finance the Dangote Petroleum Refinery Project, an Integrated Petrochemical Complex, and the largest single train petroleum refinery in the world.

Standard Chartered Capital & Advisory Nigeria Limited acted as the lead issuing house and bookrunner on the transaction, while Meristem Capital, Stanbic IBTC Capital, Vetiva Capital, Absa Capital Markets, Afrinvest Capital, Coronation Merchant Bank, Ecobank Development Company, FBNQuest Merchant Bank, FCMB Capital Markets, Greenwich Merchant Bank, Quantum Zenith Capital, Rand Merchant Bank Nigeria and United Capital acted as joint issuing houses.

Olakunle Alake, group managing director of Dangote Industries, who commented on the significance of the transaction, expressed the company’s delight to have successfully conducted its debut issuance under its newly established debt issuance programme.

“We are very pleased to have set this remarkable milestone, showcasing the depth and liquidity of the Nigeria debt capital market. The success of this transaction further demonstrates investor confidence in our credit story and the appreciation of the work done by the Group across several key sectors that are crucial to the development of the continent,” he noted.

Alake further disclosed that the proceeds from the landmark transaction will be used to part-finance the Dangote Petroleum Refinery Project which is the initiative by the Group to establish the largest refinery in Africa, thus positioning Nigeria as a net exporter of refined crude.

In his remarks, Olukorede Adenowo, Standard Chartered’s executive director for corporate, commercial and institutional banking, Nigeria & West Africa, said, “On behalf of the Issuing Houses, we are proud to have led this historic transaction which reflects the strong credit quality of the issuer as well as the resilience of the Nigerian domestic debt capital markets, despite the current global market volatility.”

Adenowo further commended the board and management of the Dangote Group for continuously striving to develop the domestic debt capital markets and setting records through its various issuances both at the subsidiary and Group levels.

He also thanked the Securities & Exchange Commission (SEC), Nigerian Exchange Limited (NGX) and FMDQ Securities Exchange Limited (FMDQ) for their unwavering support throughout the entire process.

According to a statement obtained by Business A.M, the bond notes will be listed on the Nigerian Exchange Limited and FMDQ.