Dangote to leverage N300b bonds for expansion projects, debts financing
The Group Chief Executive Officer, Dangote Industries Limited, Olakunle Alake has expressed delight about the completion of the listing of the firm’s N300 billion series 1 and 2 bonds on Nigerian Exchange Limited (NGX), commending the depth of the capital market.
Dangote Industries explained that the proceeds of the bond would be deployed for the company’s expansion projects, short-term debt refinancing and working capital requirements.
At the ‘Closing Gong’ ceremony to commemorate the listing of the bond held at the Exchange on Wednesday, Alake, who was represented by the Group Chief Finance Officer, Mallam Mustapha Ibrahim, said: “We are pleased to have showcased the depth and liquidity of the domestic capital market, while we reflect the strong quality of the issuer, despite the current global market realities.”
According to him, the depth of the market reflected in the successful issuance of the bond, which was the largest aggregate local currency bond issued in the capital market so far, within the year.
He further noted that the listing of the bond recorded participation from a wide range of investors including domestic pension funds, asset managers and insurance companies, as well as further demonstrates investors’ confidence in Nigeria’s credit reality.
Also speaking, Divisional Head, Capital Markets, NGX, Jude Chiemeka, applauded the listing of the bond, which provides corporates the opportunity to raise capital, saying, “the listing of this transaction on our platform not only allows for a more liquid capital market, but it also shows our capacity to facilitate large transactions towards enabling a more robust ecosystem.”
He further noted that NGX remains committed to fostering similar transactions through our digital gateway such as this and a confident market where corporates and investors can achieve their respective objectives.
The company had in 2021, announced the successful issuance of it N50 billion Series 1 fixed rate senior unsecured bonds under its new N300 billion multi-instrument issuance programme,
According to a statement by the company, the bond recorded participation from a wide range of investors including domestic pension funds, asset managers, insurance companies and high net-worth investors despite market headwinds.
“This bond issuance allows us to move a step further in achieving our expansion objectives and will be deployed to projects instrumental in supporting our export strategy while improving our cost competitiveness.
“We thank the investor community for their continued support in the management of Dangote Cement and their successful participation in the bond issuance”, it added.