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.
The Group Managing Director, DIL, Olakunle Alake, told investors that the Company’s decision to issue the bonds to raise the required capital for part-financing of the 650,000 barrels per day (bpd) refinery was to encourage the participation of Nigerians in financing the project.
In a company statement yesterday, Alake was quoted as saying that following a very rigorous internal assessment, the management concluded that tapping the local capital market was inevitable, considering the sheer scale of the project being developed, and existing market volatility.
He said: “Today, we are delighted to have successfully completed the largest aggregate local currency bond issuance by a corporate in the Nigerian capital market within a calendar year.
“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.”
Alake recalled that 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 market.
He added that the management is pleased to have set the remarkable milestones, showcasing the depth, resilience and liquidity of the domestic capital market, whilst reflecting the strong credit quality of the issuer, despite the current global market volatility.
The bonds were primarily for part-financing the Group’s 650,000 barrels per day (bpd) refinery project.
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.”
Alake also welcomed the cooperation and support of NGX and the stockbrokers to meet this important investors’ objective towards accelerating economic activities across Africa, whilst maximizing stakeholder returns.
Market confidence
Also speaking, the lead Issuing House for the Series 1 bonds and the Chief Executive Officer, Standard Chartered Capital & Advisory Nigeria Limited, Mrs. Yemisi Deji-Bejide, expressed appreciation to the DIL management for the confidence and entrusting her company with the responsibility.
She said: “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 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.
