The board of Dangote Cement Plc, on Wednesday, said it has successfully completed its ₦116bn Series 2 Bond issuance, the largest corporate bond issuance in the history of the Nigerian Capital Markets, and the second under the company’s ₦300bn MultiInstrument Issuance Programme.
According to a filing on the Nigerian Exchange Limited platform by Edward Imoedemhe, the Deputy Company Secretary, the bond issuance comprised three tranches: a five-year Tranche A issuance priced at 11.85%, a seven-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, which attracted participation from a wide array of institutional investors, including pension funds, asset managers, banks, insurance companies, and high net worth individuals, will be used to finance the Dangote Cement’s Nigeria expansion projects. Others include short-term debt refinancing and working capital requirements.
Stanbic IBTC Capital, the statement added, acted as Lead Issuing House/Book runner 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.
Commenting on the Bond Issuance, Michel Puchercos, Group Managing Director of Dangote Cement, expressed the company’s delight at successfully undertaking “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,” he stressed.
The statement added that the Bond notes will be listed on the Nigerian Exchange Limited and FMDQ Securities Exchange.