Dangote Cement has completed its N116 billion series 2 bond issuance which is the largest corporate bond issuance in the Nigerian capital market.
In a statement published on the Nigerian Exchange Ltd Website on Wednesday, the company explained that the bond issuance is the second issuance under its N300 billion multi-instrument issuance programme.
It also said that it had attracted participation from a wide array of institutional investors, including pension funds, asset managers, banks, insurance companies and high net-worth individuals.
The bond issuance comprised three tranches: a five-year Tranche A issuance priced at 11.85 per cent , a seven-year Tranche B issuance priced at 12.35 per cent, and a 10-year Tranche C issuance priced at 13.00 per cent.
The proceeds of the bond issuance would be used to finance the company’s Nigeria expansion projects, short-term debt refinancing and working capital requirements.
StanbicIBTC Capital acted as lead issuing house/bookrunner to the bond issuance, whilst Absa Capital Markets, Meristem Capital, Standard Chartered, United Capital and 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.
Commenting on the bond issuance, Mr Michel Puchercos, Group Managing Director of Dangote Cement, said: “Dangote Cement is delighted to have successfully undertaken a second issuance under our Multi-Instrument Issuance Programme which was launched last year.
“We are even more delighted to have concluded the most significant corporate bond issuance in the history of the Nigerian Debt Capital Markets.
”This landmark transaction will 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.”
Puchercos said the bond notes would be listed on the NGX and FMDQ Securities Exchangenan.