Dangote Industries Lists N300bn Bonds To Part Finance Oil Refinery Project On NGX, FMDQ
Caption: From left, Chief Executive Officer, Standard Chartered Capital & Advisory Nigerian Limited, Yemisi Deji-Bejide; Chief Executive Officer of FMDQ, Bola Onadele Koko; Group Managing Director, Dangote Industries Limited, Olakunle Alake; and Chief Executive, Stanbic IBTC Capital Ltd, Funso Akere, during the Listing Ceremony of the Dangote Industries Funding Plc’s Bonds at FMDQ, in Lagos
Dangote Industries Limited (DIL) formally listed its N300bn Series 1 and 2 bonds issued under the Dangote Industries Funding Plc programme during a grand listing ceremony at both the FMDQ and the Nigeria Exchange Limited (NGX) in Lagos.
Addressing investors, stockbrokers and analysts during the listing ceremonies, Olakunle Alake, Group Managing Director of Dangote Industries Limited said the bonds were primarily for part-financing the Group’s 650,000bpd refinery project.
He said the decision to raise the required capital for the project through bonds programme which remain the largest aggregate local currency issuance within a calendar year by any corporate organization in the history of the capital markets, was to in a bid to encourage domestic financing of the project.
Alake noted that decision to approach the Nigerian market, considering the sheer scale of the project being developed, as well as the existing market volatility, followed a very rigorous internal assessment by the management.
While the Dangote Group is not new at raising funds in the local capital markets, he explained that being a first-time issuer at the holding company level presented a fresh challenge for the company.
The challenge, he continued, was however one the management was willing to embrace to achieve the desired outcome, expressing delight “to have successfully completed the largest aggregate local currency bond issuance by a corporate in the Nigerian capital markets within a calendar year.
“The proceeds from the Series 1 and 2 bond issuances were dedicated to part-financing the Dangote Petroleum Refinery Project which is the initiative by the Group to establish an Integrated Petrochemical Complex, and the largest Single Train Petroleum Refinery in the World.”
Alake recalled that the DIL recorded another first through the N187 billion series 1 bonds (under the N300 billion programme), being the largest corporate bond ever issued in the history of the Nigerian capital markets, adding that the management was pleased to have set the remarkable milestones, showcasing the depth, resilience and liquidity of the domestic capital markets, whilst reflecting the strong credit quality of the issuer, despite the current global market volatility.
The bonds issuances, he continued, “were well received by the market and recorded participation from a wide range of investors including domestic pension funds, asset managers, insurance companies, and high net-worth investors.”
The reception of the market, he continued, “was buoyed by the strategic importance of the project and its expected impact on the Nigerian economy. Overall, we strongly believe the success of the Series 1 and 2 bond issuances 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 Nigeria and the continent at large.”
Alake further stressed that the company was not new to listing securities on NGX, seeking “the cooperation and support of NGX and the stockbrokers to meet this important investors’ objective.”
The DIL Group Managing Director assured that the company would remain resolute in the Nigerian and African story and continue to demonstrate commitment, as one of the foremost pan-African conglomerates, through investments in projects and initiatives that directly improve the quality of lives of Nigerians.
“Indeed, these are very exciting times for us as a business, and so we would continue to welcome opportunities to work with stakeholders in the domestic capital markets towards accelerating the economic activities across Africa, whilst maximizing stakeholder returns.”
Also speaking at the event, the lead Issuing House for series 1 and CEO of Standard Chartered Capital & Advisory Nigeria Limited, Mrs. Yemisi Deji-Bejide, expressed appreciation for the confidence reposed on Standard Chartered by the management of Dangote Industries, describing the success of the transaction as a strong testament to the fact that Investors strongly believe in Dangote Group’s credit story and are willing to continue to support the growth of the business.
Caption: From left: shows Anthony Chiejina, Group Head, Corporate Communications, Dangote Group; Bayo Rotimi, Managing Director, Greenwich Merchant Bank; Dr. Titilayo Fowokan, Group Head, Strategic Tax and Compliance, Dangote Group; Chuka Eseka, Vetiva Capital Management Limited; Tokunbo Aturamu, Head, Debt Capital Markets, Stanbic IBTC Capital; Elizabeth Ebi, Group Managing Director, Futureview Financial Services Limited; Tony Esene, Group Head, Corporate Finance, Dangote Industries Limited; Mallam Mustapha Ibrahim, Group Chief Finance Officer, Dangote Industries Limited; Jude Chiemeka, Divisional Head, Capital Markets, Nigerian Exchange Limited (NGX); Yemisi Deji Bejide, Head, Mergers & Acquisitions, Standard Chartered Capital & Advisory Nigeria Limited; Dalu Ajene, Managing Director, Rand Merchant Bank Nigeria Limited; Oluwole Abegunde, Group Managing Director; Meristem Capital Limited; Funso Akere, Chief Executive Officer, Stanbic IBTC Capital; Azeezah Muse-Sadiq, Solicitor, Banwo & Ighodalo and Gbadebo Adenrele, United Capital Plc, during Dangote Industries Limited Closing Gong ceremony commemorating the Dangote Industries Funding plc series 1 and 2 Bond listing at the Exchange today in Lagos.
She also said it demonstrated the depth of the Nigerian capital markets and resilience, despite all the volatility in the global markets and the macro headwinds, assuring that “investors are keen to support impactful infrastructure projects in Nigeria, as the proceeds of the bond are being used to fund the largest single train refinery in the world.”
Speaking at the Closing Gong ceremony to commemorate the listing of the bond at the Nigerian Exchange on Wednesday, 29 March 2023, Alake, who was represented by the Group Chief Finance Officer, Mallam Mustapha Ibrahim expressed pleasure at being able to test the depth and liquidity of the domestic capital market, “whilst we reflect the strong quality of the issuer, despite the current global market realities.”
He further noted that the listing recorded participation from a wide range of investors including domestic pension funds, asset managers and insurance companies and further demonstrates investors’ confidence in Nigeria’s credit reality.
He thanked the investor community for their support for the transaction as well as our various advisors and stakeholders, while also commended the Nigeria Exchange Limited (NGX) for its unwavering support throughout the entire process as well as the continued commitment towards deepening the Nigerian capital markets.