Dangote Industries Funding Plc has announced the completion of a N187.58bn Series 1 (Tranche A and Tranche B) Fixed Rate Senior Unsecured Bond Issue under its N300bn Debt Issuance Programme.
The bond issue represents the largest local currency bond issuance by a corporate issuer in the history of the Nigerian debt capital markets, according to a statement. The announcement was made at the signing ceremony last Tuesday.
Vetiva Capital Management Limited acted as Joint Lead Issuing House/Bookrunner on the Series 1 Bond Issuance – which represents the largest single bond issuance by a corporate in the Nigerian capital market.
The Managing Director, Dangote Industries, Mr. Olnakunle Alake, while speaking on the issuance, expressed delight and thanked the issuing houses and other professional parties for working tirelessly to ensure the timely and successful completion of the bond issue.
The statement quoted him as saying, “We are highly pleased with the level of reception from the investor universe on the Series I bond issuance and 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 continent’s development.
“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 appreciate the trust our investors have reposed in us and our various advisors and stakeholders.”
The bond issue comprised seven-year Tranche A and 10-year Tranche B bonds. The seven-year Tranche A bonds were priced at 12.75per cent, and the 10-year Tranche B bonds were priced at 13.50per cent. The bond issue attracted participation from a diverse range of institutional investors, including pension funds and asset managers, supported by an AA+ rating from GCR and an AA rating from Fitch.
The Managing Director/Chief Executive Officer, Vetiva Capital Limited, Chuka Eseka, also remarked on the bond issue.
“Vetiva is delighted to have acted as Joint Lead Issuing House/Bookrunner on the Series 1 Bond Issuance – which represents the largest single bond issuance by a corporate in the Nigerian capital market. This impressive outing by DIL is a testament to investor confidence in the Company and the revolutionary potential of the project to be funded with the proceeds of the bond issuance. We thank the Board and Management of DIL for trusting the other professional parties and us on this landmark transaction and allowing us to deploy our capital raising expertise on the issuance.”