Dangote Industries Limited (DIL) has listed its N300 billion Series 1 and 2 bonds issued under the Dangote Industries Funding Plc on both the Nigerian Exchange Limited (NGX) and the FMDQ in a brief ceremony held in Lagos.
The Group Managing Director of the company, Olakunle Alake told investors during the listing ceremony that the bonds were primarily listed for part-funding of the group’s 650,000 barrels per day (bpd) of the refinery project.
He explained that the decision of the company to issue the bonds was intended to raise the required capital for part-financing of the multi-billion Naira refinery project through Nigerian and other investors’ participation.
According to him, the N300 billion bonds remained the largest aggregate local currency bond issuance in the annals of the nation’s capital markets within one year by any listed entity.
Alake clarified that the decision to explore the local capital market for the project’s funding was taken by the management and considered desirable given the size of the project and the current capital markets volatility globally.
The industrialist, while noting that the Dangote Group is not new in raising funds from the local markets, pointed out that being a first-time issuer at the holding company level presented a new challenge for the company but that the management was fully prepared to embrace it to achieve desired positive outcome.
He explained: “Today, we are delighted to have successfully completed the largest aggregate local currency bond issuance by a corporate in the Nigeria capital markets within a 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 Dangote Industries Limited recorded another first through the N187 billion Series 1 bonds under the N300 billion programmes, representing the largest corporate bond ever issued in the nation’s capital markets, adding that the management was impressed to have set the record which demonstrated the depth, resilience and liquidity of the domestic capital markets as well as the strong credit quality of the issuer.
