Dangote Industries Limited (DIL) has formally listed its
N300 billion Series 1 and 2 bonds issued under the Dangote Industries Funding
Plc during a grand listing ceremony at both the FMDQ and the Nigeria Exchange
Limited (NGX) in Lagos.
Dangote Industries Limited (DIL) has formally listed its N300 billion Series 1 and 2 bonds issued under the Dangote Industries Funding Plc at the FMDQ and the Nigerian Exchange Limited (NGX).
Olakunle Alake, group managing director of DIL, told
investors during the listing ceremony that the bonds were primarily for
part-financing the group’s 650,000-barrels-per-day refinery project.
He said the decision of the company to issue bonds to raise
the required capital for part-financing the refinery project was to encourage
the participation of Nigerians in the financing of the project.
“The bonds remain the largest aggregate local currency bond
issuance within a calendar year by any corporate organization in the history of
the capital markets,” Alake said on Wednesday.
He said that following a very rigorous internal assessment,
the management concluded that tapping the local capital markets was inevitable,
considering the sheer scale of the project being developed and the existing
market volatility.
According to Alake, while the Dangote Group is not new at
raising funds in the local capital markets, being a first-time issuer at the
holding company level presented a fresh challenge for the Company. However, the
challenge was one the management was willing to embrace to ensure the desired
outcome was achieved, he said.
“Today we are delighted to have successfully completed the
largest aggregate local currency bond issuance by a corporate in the Nigerian
capital markets within a calendar year,” Alake said.
He said: “The proceeds from the Series 1 and 2 bond
issuances were dedicated to part-financing the Dangote Petroleum Refinery
Project, which is the initiative by the group to establish an integrated
petrochemical complex, and the largest single train petroleum refinery in the
world.
“The DIL recorded another first through the N187 billion
series 1 bonds (under the N300 billion programme), being the largest corporate
bond ever issued in the history of the Nigerian capital markets, and the
management was pleased to have set the remarkable milestones, showcasing the
depth, resilience and liquidity of the domestic capital markets, whilst
reflecting the strong credit quality of the issuer, despite the current global
market volatility.”
He said the bond issuances were 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.
“Indeed, the reception of the market was buoyed by the
strategic importance of the project and its expected impact on the Nigerian
economy. Overall, we strongly believe the success of the Series 1 and 2 bond
issuances 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 Nigeria and the continent at large,” he added.
Alake said that his company was not new in the business of
listing securities on NGX. “We are therefore conversant with all the listing
requirements and promise to be prompt and up to date in that regard. We count
on the cooperation and support of NGX and the stockbrokers to meet this
important investors’ objective.”
He said the company would remain resolute in the Nigerian
and African story and continue to demonstrate commitment, as one of the
foremost pan-African conglomerates, through investments in projects and
initiatives that directly improve the quality of lives of Nigerians.
“Indeed, these are very exciting times for us as a business,
and so we would continue to welcome opportunities to work with stakeholders in
the domestic capital markets towards accelerating the economic activities
across Africa, whilst maximising stakeholder returns,” he added.
Yemisi Deji-Bejide, the lead issuing house for series 1 of
the bonds and the chief executive officer of Standard Chartered Capital &
Advisory Nigeria Limited, expressed appreciation of her organisation to the
management of the DIL for reposing so much confidence in Standard Chartered by
entrusting it with the responsibility.
“Every time we gather at FMDQ for the listing ceremony of an
issuance by the Dangote Group, it is always a record milestone. Early in 2022,
we issued a bond for Dangote Cement which was the largest corporate bond
issuance at the time, and little did we know that a few months down the line,
the Group would comfortably break that record,” she said.
Deji-Bejide described the success of the transaction as a
strong testament to the fact that investors strongly believe in Dangote Group’s
credit story and are willing to continue to support the growth of the business.
She said it demonstrated the depth of the Nigerian capital
markets and resilience, despite all the volatility in the global markets and
the macro headwinds.
“Lastly and most importantly, investors are keen to support
impactful infrastructure projects in Nigeria, as the proceeds of the bond are
being used to fund the largest single train refinery in the world,” Deji-Bejide
said.
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