By Nneka Nwogwugwu
Dangote Cement Company 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 made available on the Nigerian Exchange Ltd. (NGX) Website on Wednesday in Lagos.
The bond issuance is the second issuance under its N300 billion multi-instrument issuance programme, the company stated.
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 per cent, and a 10-year Tranche C issuance priced at 13.00 per cent.
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.
Mr Michel Puchercos, Group Managing Director of Dangote Cement, said the landmark transaction will fund expansion projects and further support the implementation of export strategy.
Puchercos said the bond notes would be listed on the NGX and FMDQ Securities Exchange.
Quality journalism costs money. Today, we’re asking that you support us to do more. Support our work by sending in your donations.
The donation can be made directly into NatureNews Account below
