Dangote Group Completes ₦187.6bn Bond For Dangote Petroleum Refinery

Caption: Sitting from left, Executive Principal, Standard Chartered, Amaka Nsefor; Group Managing Director, Dangote Industries Limited, Olakunle Alake; Group Treasurer, Dangote Industries Limited, Mustapha Ibrahim; (Standing): Lead, Contracts Unit, Dangote Industries Limited, Sulaiman Zubair; Corporate Finance Specialist, Dangote Industries Limited, Yusuf Agbolahan; and Group General Manager, Dangote Industries Limited, Corporate Finance, Tony Esene; at the Dangote Industries Funding Plc, N187,584,545,000.00, 7years & 10-year, Senior Unsecured Fixed Rate Series 1 Tranche A&B Bounds Under the #300,000,000,000, Dangote Industries Funding Plc, Debt Issuances Programme signing ceremony, In Lagos on Tuesday, July 19, 2022.


One of Africa and Nigeria’s diversified and fully integrated conglomerates Dangote Industries Limited (Dangote Group), on Tuesday, announced the successful completion of its ₦187.6bn Series 1 Bond Issuance, which it described as the largest corporate bond ever issued in the history of the Nigerian capital market.

This landmark transaction, the group said in a statement, represents its first issuance, and comprises of a seven-year Tranche-A bond issued at 12.75% and a 10-year Tranche-B bond issued at 13.50%, under the newly established NGN300 billion Debt Issuance Programme

Proceeds of the bond issuance, which attracted participation from a wide range of investors including domestic pension funds, asset managers, insurance companies and high net-worth investors, will go into part-financing the Dangote Petroleum Refinery Project, an Integrated Petrochemical Complex, and the largest Single Train Petroleum Refinery in the world.

The Bond notes will be listed on the NGX and FMDQ.

Standard Chartered Capital & Advisory Nigeria Limited acted as Lead Issuing House and Bookrunner on Transaction, while Meristem Capital, Stanbic IBTC Capital, Vetiva Capital, Absa Capital Markets, Afrinvest Capital, Coronation Merchant Bank, Ecobank Development Company, FBNQuest Merchant Bank, FCMB Capital Markets, Greenwich Merchant Bank, Quantum Zenith Capital, Rand Merchant Bank Nigeria and United Capital acted as Joint Issuing Houses.

Speaking on the significance of the transacton, Olakunle Alake, Group Managing Director of Dangote Industries, expressed delight at the success of its debut issuance under the newly established Debt Issuance Programme.

“We are very pleased to have set this remarkable milestone, showcasing the depth and liquidity of the Nigeria Debt Capital Market. The success of this transaction further demonstrates investor confidence in our credit story and the appreciation of the work done by the Group across several key sectors that are crucial to the development of the continent.

“The proceeds from this landmark transaction will be used to part-finance the Dangote Petroleum Refinery Project which is the initiative by the Group to establish the largest refinery in Africa, thus positioning Nigeria as a net exporter of refined crude. We want to specially thank the investor community for their support on this transaction, as well as our various advisors and stakeholders,” he stressed.

Also speaking on the deal, Olukorede Adenowo, Standard Chartered’s Executive Director, Corporate, Commercial and Institutional Banking, Nigeria & West Africa, said the Issuing Houses “are proud to have led this historic transaction which reflects the strong credit quality of the issuer as well as the resilience of the Nigerian domestic debt capital markets, despite the current global market volatility.

He also appreciated “the Dangote Group for continuously striving to develop the domestic debt capital markets and setting records through its various issuances both at the subsidiary and Group levels.