By Adeleye Kunle
Dangote Industries Limited, DHL, has successfully completed its N187.6 billion series 1 bond issuance, the largest corporate bond ever issued in Nigeria’s capital market history.
This historic transaction is DIL’s first at the Group level, and it consists of a 7-year Tranche-A bond issued at 12.75 percent and a 10-year Tranche-B bond issued at 13.50 percent, both under the newly established N300 billion Debt Issuance Programme.
The bond issuance was well received by the market, and it attracted a diverse group of investors, including domestic pension funds, asset managers, insurance companies, and high-net-worth individuals. DIL intends to use the net proceeds of the Series 1 bond issuance to partially fund the Dangote Petroleum Refinery Project, an Integrated Petrochemical Complex and the World’s Largest Single Train Petroleum Refinery.
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, while Standard Chartered Capital & Advisory Nigeria Limited acted as the Lead Issuing House and Bookrunner on the Transaction.
Mr. Olakunle Alake, Group Managing Director of Dangote Industries, commented on the Transaction’s significance, saying, “The success of this transaction further demonstrates investor confidence in our credit story and appreciation of the Group’s work across several key sectors that are critical to the continent’s development.” The proceeds from this historic transaction will be used to partially fund the Dangote Petroleum Refinery Project, which is the Group’s initiative to build Africa’s largest refinery, positioning Nigeria as a net exporter of refined crude.”
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