Standard Chartered acted as Lead Issuing House on the landmark NGN187.6bn Series 1 Bond Issuance by Dangote Industries (“DIL”). The issuance comprises a 7-year 12.75% Tranche-A and a 10-year 13.50% Tranche-B Senior Unsecured Bond. This represents the first issuance by DIL, under its newly established NGN300 billion Debt Issuance Programme.
The bond issuance was 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. DIL plans to utilize the net proceeds from the Series 1 bond issuance to complete the financing of the Dangote Petroleum Refinery Project, an Integrated Petrochemical Complex, and the largest Single Train Petroleum Refinery in the World, which is currently scheduled to commence operations in the first half of 2023.
Speaking on the transaction Mr Olukorede Adenowo, Standard Chartered’s Executive Director, Corporate, Commercial and Institutional Banking, Nigeria & West Africa, noted that “Standard Chartered is proud to have led this historic transaction which marks the largest corporate bond ever issued in the Nigerian capital markets, reflecting the strong credit quality of the issuer as well as the resilience of the Nigerian domestic markets, despite the current global market volatility.”
Also speaking on the transaction, Amaka Nsofor, Executive Principal, Debt Capital Markets, highlighted that “We are very pleased with this remarkable feat. Standard Chartered continues to be a leading debt capital markets house both in the domestic and international markets. In line with our mandate, we will continue to work with our clients across Africa to deliver on their growth aspirations and use our market leading position in the capital market to drive development on the continent.”
Dangote Industries is one of the leading, diversified and fully integrated conglomerates with operations in Nigeria and Africa with 11 distinct business lines, with the cement, sugar and salt business currently contributing the majority of the group earnings. DIL also has two project companies, Dangote Oil Refinery Company Limited (“DORC”), a 650,000 b/pd integrated crude oil refinery and petrochemical plant, which is expected to be Africa’s largest oil refinery, and Dangote Fertilizer Limited (“DFL”), a facility with a production capacity of up to 2.8 Mtpa which is expected to be Africa’s largest granulated urea fertiliser manufacturing facility. DIL is currently domestically rated AA+ by GCR and AA (ngr) by Fitch Ratings.
Published on Brandfit.