Dangote Industries Limited (DIL) has 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 bonds are primarily for part-financing the Group’s 650,000 bpd refinery project, according to Olakunle Alake, Group Managing Director of Dangote Industries Limited.
“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,” said Mr. Alake during the listing ceremony.
The management concluded that tapping the local capital markets was inevitable, considering the sheer scale of the project being developed, as well as the existing market volatility.
The Dangote Group is not new at raising funds in the local capital markets, but 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, Mr. Alake explained.
“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,” he added.
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,” Mr. Alake said.
Mrs. 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 organization 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 will comfortably break that record,” Mrs. Deji-Bejide said.
The success of the transaction demonstrated the depth of the Nigerian capital markets and resilience, despite all the volatility in the global markets and the macro headwinds, she added.
“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.”
At the Nigeria Exchange Limited, the Group Managing Director for DIL, Mr. Alake, represented by the DIL Group Chief Finance Officer, Mallam Mustapha Ibrahim, thanked the investor community for their support for the transaction as well as the various advisors and stakeholders.
He also commended the Nigeria Exchange Limited (NGX) for its unwavering support throughout the entire process of issuing and listing the bonds as well as their continued commitment towards deepening the Nigerian capital markets.
