Dangote raises N187.6bn through bond to finance refinery project, others

Africa’s richest man, Aliko Dangote has raised N187.6 billion through bonds to finance operation of subsidiary companies under Dangote Industries Limited (DIL).

The capital was raised in the Nigerian bond market through its Series 1 Bond Issuance.

The bond comprises seven-year Tranche-A bond issued at 12.75 percent and a 10-year Tranche-B bond issued at 13.50 percent with the capital rated as the largest corporate bond ever issued in the history of the Nigerian capital market.

In a statement obtained by Ripples Nigeria on Wednesday, DIL said the bond was under its newly established N300 billion Debt Issuance Programme, and the bond notes would be listed on the Nigerian Exchange Group (NGX) and FMDQ Securities Exchange.

Domestic pension funds, asset managers, insurance companies and high net-worth investors contributed to the N187.6 billion,which will be disbursed into the Dangote Petroleum Refinery Project and its Petrochemical Complex.

Standard Chartered Capital & Advisory Nigeria Limited acted as the Lead Issuing House and Bookrunner on the transaction.

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 were the Joint Issuing Houses.

Commenting on the fundraising, Group the Managing Director of DIL, Olakunle Alake, said: “Dangote Industries is delighted to have successfully conducted its debut issuance under our newly established Debt Issuance Programme.

“We are very pleased 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 development of the continent.

“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 want to specially thank the investor community for their support on this transaction, as well as our various advisors and stakeholders.”