Dangote Raises N187.6b in Largest Corporate Bond

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.

July 20, 2022