Dangote Cement issues N116bn series 2 fixed rate senior bond
Dangote Cement Plc on Wednesday announced the successful completion of its N116billion Series 2 Bond issuance, which is the largest corporate bond issuance in the history of the Nigerian Capital Market.
The cement manufacturing company noted that the Bond Issuance, which is the second issuance under its N300billion MultiInstrument Issuance Programme, attracted participation from a wide array of institutional investors, including pension funds, asset managers, banks, insurance companies and high networth individuals.
According to the company in a statement on the Nigerian Exchange Limited (NGX), 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%.
The statement added that the proceeds of the Bond Issuance will be used to finance the company’s expansion projects in Nigeria, short-term debt refinancing and working capital requirements.
Commenting on the Bond Issuance, Group Managing Director of Dangote Cement, Mr Michel Puchercos in a statement said: “Dangote Cement is delighted to have successfully undertaken a second issuance under our Multi-Instrument Issuance Programme which was launched last year, and even more delighted to have concluded the most significant corporate bond issuance in the history of the Nigerian Debt Capital Markets.
“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.”
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.
The Bond notes will be listed on the Nigerian Exchange Limited and FMDQ Securities Exchange
