The management of FMDQ Exchange, on Wednesday, noted the renewed confidence in the Nigerian Debt Capital Market as it continually demonstrates agility and resilience in the face of the ongoing COVID-19 pandemic, validating its potential to support economic growth and development as well as propel prosperity in the long-run.
This is, the FMDQ said in a statement, is evident in the renewed confidence shown by market participants and the wider financial market stakeholder community in the potential of the DCM to sustainably meet their short- and long-term funding needs, providing the required support to governments, corporates, and individuals.
Specifically, the statement said, a demonstration of such renewed confidence, resulted in Dangote Cement issuing of ₦250bn in Debt Securities on the FMDQ Exchange within the first six months of 2020.
A breakdown of the figure showed that the company raised the fund from its recent debut ₦100bn Series 1 Bond (the Dangote Cement Bond) under its ₦300bn Bond Programme, which was 150% oversubscribed, to its earlier issued ₦150bn commercial paper (CP) notes (series 13-16 under its ₦150bn Domestic CP Issuance Programme), all listed and quoted (exclusively), respectively, on FMDQ Securities Exchange Limited (FMDQ Exchange or the Exchange)’s platform.
Similarly, and in support of the market development efforts and initiatives of FMDQ Group, the assets of the Dangote Cement Bond are also lodged with FMDQ’s wholly owned central securities depository, FMDQ Depository Limited (FMDQ Depository).
Commenting on the recent bond issuance, of Dangote Cement Plc, Michel Puchercos, said the “landmark transaction is the largest ever bond issuance by a corporate issuer in Nigeria.
“It allows us to further broaden our sources of funding by accessing long-term debt at competitive costs from the capital market and builds further on the success of our domestic commercial paper programme. The success of these transactions, in the current challenging environment, illustrates investors’ continuous confidence in Dangote Cement’s strategy, strong cash generation and solid credit profile,” he added.
According to Executive Director and Head of Debt Capital Markets at Stanbic IBTC Capital Limited, Kobby Bentsi-Enchill, sponsor of the Dangote Cement issuances, “Stanbic IBTC Capital Limited has a long history of partnering with Dangote Cement Plc, and we are delighted to have advised on this landmark corporate bond issuance which reflects the depth and diversity of the Nigerian debt capital markets.
“The overwhelming success of the transaction despite the challenging environment is testament to the investor community’s confidence in the strategic vision and financial strength of Dangote Cement,” he stressed, expressing pleasure that these efforts are yielding results.
Also commenting on the sophisticated inventory of issuances by Dangote Cement and its support for and collaboration with FMDQ, the Chief Executive of FMDQ Group, Bola Onadele Koko, expressed delight noting that, “the entry of Africa’s premier and largest business conglomerate; Dangote Group, through its subsidiary, Dangote Cement PLC, into the Nigerian DCM since 2018, and its sustained activities so far, having raised over ₦250bn worth of debt securities in the first half of 2020 alone, attests to the viability of the domestic capital markets to efficiently support the efforts of corporates and governments towards building the Nigeria we all desire.”
According to him, with the active support of stakeholders, FMDQ has since inception in 2013, remained committed to making the Nigerian financial market globally competitive, operationally excellent, liquid, and diverse, in line with its “GOLD” Agenda for the transformation of the markets.