Dangote Industries Limited (DIL), the holding company for the Dangote Group, has leveraged its top-rated profile to raise N187.6 billion through bond issue.
The N187.6 billion Series 1 Bond is the largest corporate
bond ever issued in the history of the Nigerian capital market.
The issue is also the first issuance by DIL at group level.
The bonds comprised of a seven-year tranche-A bond issued at 12.75 per cent and
a 10-year tranche-B bond issued at 13.50 per cent. The N187.6 billion bond was
issued under the group’s newly established N300 billion debt issuance
programme.
The launch of the book building or offering of the
trail-blazing bond issuance had been reported.
Analysis of the book building and allotment showed that the
bond issue was well received by the market with participation from a wide range
of investors including domestic pension funds, asset managers, insurance
companies and high net-worth investors.
DIL plans to use the net proceeds from the bond issuance to
part-finance the Dangote Petroleum Refinery project, an Integrated
petrochemical complex, and the largest single train petroleum pefinery in the
world.
Group Managing Director, Dangote Industries Limited, Mr.
Olakunle Alake, said the group was delighted 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.
“The proceeds from this 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. We want to specially thank the investor
community for their support on this transaction, as well as our various
advisors and stakeholders,” Alake said.
Executive Director, Corporate, Commercial and Institutional
Banking, Nigeria & West Africa, Standard Chartered, Mr. Olukorede Adenowo
described the bond issue as a historic transaction which reflects the strong
credit quality of the Dangote Group as well as the resilience of the Nigerian
domestic debt capital markets, despite the current global market volatility.
He 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.
The bonds will be listed on the Nigerian Exchange (NGX) and
FMDQ Securities Exchange.
Standard Chartered Capital & Advisory Nigeria Limited
acted as the lead issuing house and bookrunner on 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.
Dangote Industries is one of the leading, diversified and
fully integrated conglomerate with operations in Nigeria and Africa across a
wide range of industries, including cement, sugar, salt, condiments, packaging,
energy, fertiliser and petrochemicals.
The group’s core business focus is to provide local,
value-added products and services that meet the “basic needs” of the African
populace through the construction and operation of large-scale manufacturing
facilities in Nigeria and across Africa.