August 9, 2022



Dangote Industries full company issuance of N87.6bn unsecured bonds

Aliko Dangote

Dangote Industries Restricted announce the profitable completion of its N187.6 billion Sequence 1 Bond Issuance.

The Issuance is the most important company bond ever issued within the historical past of the Nigerian capital market.

This landmark transaction represents the primary issuance by DIL at Group stage and contains of a 7-year Tranche-A bond issued at 12.75 per cent and a 10-year Tranche-B bond issued at 13.50 per cent, underneath the newly established N300 billion Debt Issuance Programme.

The bond issuance was nicely obtained by the market and recorded participation from a variety of traders together with home pension funds, asset managers, insurance coverage corporations and excessive net-worth traders.

DIL plans to utilise the web proceeds from the Sequence 1 bond issuance to part-finance the Dangote Petroleum Refinery Challenge, an Built-in Petrochemical Complicated, and the most important Single Practice Petroleum Refinery within the World.

Normal Chartered Capital & Advisory Nigeria Restricted acted because the Lead Issuing Home and Bookrunner on Transaction, whereas Meristem Capital, Stanbic IBTC Capital, Vetiva Capital, Absa Capital Markets, Afrinvest Capital, Coronation Service provider Financial institution, Ecobank Growth Firm, FBNQuest Service provider Financial institution, FCMB Capital Markets, Greenwich Service provider Financial institution, Quantum Zenith Capital, Rand Service provider Financial institution Nigeria and United Capital acted as Joint Issuing Homes.

Commenting on the importance of the Transaction, Olakunle Alake, Group Managing Director of Dangote Industries, mentioned: “Dangote Industries is delighted to have efficiently carried out its debut issuance underneath our newly established Debt Issuance Programme. We’re more than happy to have set this exceptional milestone, showcasing the depth and liquidity of the Nigeria Debt Capital Market. The success of this transaction additional demonstrates investor confidence in our credit score story and the appreciation of the work performed by the Group throughout a number of key sectors which are essential to the event of the continent.

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Additionally talking on the transaction, Olukorede Adenowo, Normal Chartered’s Government Director, Company, Industrial and Institutional Banking, Nigeria & West Africa, mentioned: “On behalf of the Issuing Homes, we’re proud to have led this historic transaction which displays the robust credit score high quality of the issuer in addition to the resilience of the Nigerian home debt capital markets, regardless of the present world market volatility.