The money is to finance the Dangote
Petroleum Refinery being built in Lagos and due for completion in the first
quarter of next year.
The firm, through a special purpose vehicle
fund. Dangote Industries is offering two tranches of bonds to raise up to N150
billion, with a provision to scale up to the full size of its N300 billion
registered bond issuance programme.
The book building- a register for
prospective investors- for the N300 billion bond issuance is scheduled to close
Thursday.
DIL is the sponsor of the bond issuance
with Dangote Oil Refining Company Limited and Dangote Fertiliser Limited as
co-obligors. Dangote is rated AA+ by GCR and AA (ngr) by Fitch.
The net proceeds of the bond issue will be
used to further finance the group’s Dangote Petroleum Refinery project, which
is scheduled to commence operations in the first half of 2023.
Dangote is offering a seven-year,
fixed-rate senior unsecured bond with a pricing range of between 12.25 per cent
and 12.75 per cent, maturing in 2029.
It is also offering simultaneously a
10-year fixed rate senior unsecured bond with a pricing range of 13.00 per cent
and 13.50 per cent and a maturity date of 2032. The coupon for the bond will be
paid on a semi-annual basis.
The minimum subscription to the offer is
10,000 units at N1,000 per unit, representing a minimum subscription value of
N10 million and thereafter in multiples of N1,000.
After the completion of the issue, the bond
will be listed on FMDQ Securities Exchange Limited and Nigerian Exchange
Limited.
Dangote Industries is a widely diversified
and fully integrated conglomerate with operations in Nigeria and other African
countries.
The group’s portfolio spans some 11
distinct business lines across a wide range of industries, including cement,
sugar, salt, condiments, packaging, energy, fertiliser and petrochemicals. Three business lines-cement, sugar and salt
businesses currently contribute a majority of the group earnings and are industry
leaders.
In March 2022, Dangote Fertilizer’s plant
was commissioned with a production capacity of 3.0 million metric tons of urea
and ammonia per annum. The oil refinery is projected with an Installed Capacity
of 540,000 barrels per day.
Dangote Cement Plc, the current flagship of
the group, grew its turnover by 33.8 per cent to N1.38 trillion in 2021.
Sub-Saharan Africa’s largest cement producer, Dangote Cement has an installed
capacity of 45.6 metric tonnes per annum across 10 African countries.