Dangote Cement raises N116 billion in the largest corporate bond issuance in Nigerian capital market

Dangote Cement, Sub-Saharan Africa’s largest cement producer has raised N116 billion in the largest corporate bond issuance in the Nigerian capital market.

The company disclosed this is in a statement made available on the website of the Nigerian Exchange Ltd. (NGX).

Dangote Cement stated that it has completed the issuance of N116 billion series 2 fixed rate senior unsecured bonds under its N300 billion multi-instrument issuance programme.

The Bond Issuance comprised three tranches: a 5-year Tranche A issuance priced at 11.85%, a 7-year Tranche B issuance priced at 12.35%, and a 10-year Tranche C issuance priced at 13.00%.

What Dangote Cement is saying

• The statement partly reads, “Dangote Cement PLC (“Dangote Cement” or the “Company”), Sub-Saharan Africa’s largest cement producer, is pleased to announce the successful completion of its N116Billion Series 2 Bond issuance (the “Bond Issuance”), which is the largest corporate bond issuance in the history of the Nigerian Capital Markets.”
• The company said that the  Bond Issuance attracted participation from a wide array of institutional investors, including pension funds, asset managers, banks, insurance companies and high net worth individuals.
• The company also stated that the objective of the fundraising was to finance Dangote’s expansion projects. It said, “The proceeds of the Bond Issuance will be used to finance the Company’s Nigeria expansion projects, short-term debt refinancing and working capital requirements.”
• Michel Puchercos, group managing director of Dangote Cement, said: “Dangote Cement is delighted to have successfully undertaken a second issuance… and even more delighted to have concluded the most significant corporate bond issuance in the history of the Nigerian debt capital markets.
• Pucheros shed light on the motive of the bond insurance saying, “This landmark transaction would fund our expansion projects and further support the implementation of our export strategy. I want to thank our stakeholders and investor community for their strong participation in another Bond issuance with the Company.”
• The company stated that Stanbic IBTC Capital acted as Lead Issuing House/Bookrunner to the Bond Issuance, whilst Absa Capital Markets, Meristem Capital, Standard Chartered, United Capital, Coronation Merchant Bank, Ecobank Development Company, FBNQuest Merchant Bank, FCMB Capital Markets, Futureview Financial Services, Vetiva Capital, Quantum Zenith Capital and Rand Merchant Bank Nigeria acted as Joint Issuing Houses