FMDQ Securities Exchange Limited has announced the admission of Dangote Cement PLC’s ₦15.20 billion Series 1, ₦7.96 billion Series 2 and ₦17.84 billion Series 3 Commercial Papers (CPs) on its platform under its ₦150 billion Commercial Paper Issuance Programme.
The Exchange said this is in demonstration of its commitment to fostering the development of the Nigerian debt capital market (DCM) by championing and supporting strategic market-driven initiatives, as well as remaining the choice platform for the registration, listing, quotation, trading and reporting of financial securities, amongst other activities
Dangote Cement is a subsidiary of the Dangote Industries, and is Sub-Saharan Africa’s leading cement company, with a production capacity of 48.6 million tonnes per year across 10 countries.
The proceeds from the Dangote Cement Series 1 – 3 CPs, which were sponsored on the Exchange by Stanbic IBTC Capital Limited – a Registration Member (Quotation) of FMDQ Exchange, will be used to support the company’s short-term working capital and funding requirements.
The Exchange also promised to continue to support institutional growth and stimulate continuous development of the economy at large, through the promotion and provision of a world-class quotations service.
By quoting these CPs on the Exchange, Dangote Cement is availed unique benefits which include, but are not limited to, enhanced investor confidence, transparent/relevant information disclosure on the issue, effective price formation and global visibility, it added.
Neveah Limited ₦2.72bn CPs
In a related development, FMDQ Exchange also approved the quotation of the Neveah Limited ₦2.72 billion Series 1 CP under its ₦10.00 billion Commercial Paper Issuance Programme on its platform.
We are delighted at the opportunity to access an alternative source of funding to meet our short-term working capital needs and look forward to further engagement with the capital markets in future.
Neveah Limited is reputed as a leading commodities trading company dealing in the export of solid minerals and agricultural products, and a registered exporter of agro-commodities and minerals with the Nigerian Export Promotion Council (NEPC).
Commenting on this milestone, the Chief Executive Officer, Ibidapo Lawal, was quoted: “Neveah Limited is pleased to have been oversubscribed on its Series 1 CP issuance under the ₦10 billion CP Programme. This funding will enable us meet export commitments to our international clients, which include some of the world’s largest commodity traders.
“We are delighted at the opportunity to access an alternative source of funding to meet our short-term working capital needs and look forward to further engagement with the capital markets in future.”
Also speaking on the transaction, the Head, Capital Markets and Advisory, United Capital PLC, Babatunde Ajayi, said: “The United Capital Investment Banking Team advised Neveah on the optimal structure with which to approach the markets. This led to the company raising 30% more than the intended sum of ₦2 billion.
“The success of this transaction underscores United Capital’s commitment to critical growth segments of the Nigerian economy, as we intend to harness our middle-market clients across the African continent into shining global leaders.”
The Neveah CP, like all other securities listed, quoted and traded on the FMDQ Exchange platform, shall be availed global visibility through the Exchange’s website and systems.
