Dangote Cement Company said it has completed its N116 billion Series 2 bond issuance which is the largest corporate bond issuance in the Nigerian capital market.
The company disclosed this in a statement on the Nigerian Exchange Ltd (NGX) website on Wednesday in Lagos.
According to the company, the bond issuance is the second issuance under its N300bn multi-instrument issuance programme.
It also said that the issuance had attracted participation from a wide array of institutional investors, including pension funds, asset managers, banks, insurance companies and high net-worth individuals.
The bond issuance comprised three tranches: a five-year Tranche A issuance priced at 11.85 per cent, a seven-year Tranche B issuance priced at 12.35%, and a 10-year Tranche C issuance priced at 13%.
According to the company, the proceeds of the bond issuance will be used to finance the company’s Nigeria expansion projects, short-term debt refinancing and working capital requirements.
It also said StanbicIBTC Capital acted as lead issuing house/bookrunner to the bond issuance, while Absa Capital Markets, Meristem Capital, Standard Chartered, United Capital and Coronation Merchant Bank, Ecobank Development Company, FBNQuest Merchant Bank, FCMB Capital Markets, Futureview Financial Services, Vetiva Capital, Quantum Zenith Capital and Rand Merchant Bank Nigeria acted as joint Issuing Houses.
Group Managing Director of Dangote Cement, Mr Michel Puchercos, said: “Dangote Cement is delighted to have successfully undertaken a second issuance under our multi-instrument issuance programme which was launched last year.
“This landmark transaction will fund our expansion projects and further support the implementation of our export strategy.”
Puchercos said the bond notes would be listed on the NGX and FMDQ Securities Exchange. (NAN)
