Dangote Cement Plc has completed its biggest corporate bond issuance in the history of the capital market.
The country’s biggest cement maker said it has completed the issuance of N116bn Series 2 Bond issuance.
The cement company revealed this on Wednesday in a statement on the Nigerian Exchange Group.
The bond Issuance, which is the second issuance under the Company’s N300bn multi-instrument
Dangote said the issuance programme, “attracted participation from a wide array of institutional investors including pension funds, asset managers, banks, insurance companies and high net worth individuals.”
The issuance is a three tranches: a 5-year Tranche A issuance priced at 11.85 per cent, a 7-year Tranche B issuance priced at 12.35%, and a 10-year Tranche C issuance priced at 13.00%.Dangote Cement said 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.
It said the bond notes would be listed on the Nigerian Exchange Limited and FMDQ Securities Exchange.
“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 statement reads.
“The Bond Issuance, which is the second issuance under the Company’s N300 billion Multi-Instrument Issuance Programme, 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 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 proceeds of the Bond Issuance will be used to finance the Company’s Nigeria expansion projects, short-term debt refinancing and working capital requirements.
“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.”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.
