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Dangote Industries Completes Issuance Of 187.6 Billion Senior Unsecured Bond

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Dangote Industries Completes Issuance Of 187.6 Billion Senior Unsecured Bond

DANGOTE INDUSTRIES COMPLETES ISSUANCE OF ₦187.6BN SERIES 1 FIXED RATE SENIOR UNSECURED BOND, MARKING NIGERIA’S LARGEST CORPORATE BOND ISSUANCE

Olushola Okunlade Writes

Dangote Industries Limited (DIL), one of the leading, diversified, and fully integrated conglomerates in Nigeria and Africa has announced the successful completion of its ₦187.6bn Series 1 Bond Issuance (the “Transaction”), which is the largest corporate bond ever issued in the history of the Nigerian capital market.

This landmark transaction represents the first issuance by DIL at the Group level and comprises a 7-year Tranche-A bond issued at 12.75% and a 10-year Tranche-B bond issued at 13.50%, under the newly established NGN300 billion Debt Issuance Programme

The bond issuance was well received by the market and recorded participation from a wide range of investors including domestic pension funds, asset managers, insurance companies, and high net-worth investors. DIL plans to utilize the net proceeds from the Series 1 bond issuance to part-finance the Dangote Petroleum Refinery Project, an Integrated Petrochemical Complex, and the giant Single Train Petroleum Refinery in the World.

Dangote Industries Completes Issuance Of 187.6 Billion Senior Unsecured Bond
Left-Right: Executive Principal Standard Chartered, Amaka Nsefor; Group Managing Director, Dangote Industries Limited, Olakunle Alake; Group Treasurer, Dangote Industries Limited, Mustapha Ibrahim; at the Dangote Industries Funding Plc, #187,584,545,000.00, 7years & 10-year, Senior Unsecured Fixed Rate Series 1 Tranche A&B Bounds Under the #300,000,000,000, Dangote Industries Funding Plc, Debt Issuances Programme Signing Ceremony, In Lagos on Tuesday, 19 July 2022.
Dangote Industries Completes Issuance Of 187.6 Billion Senior Unsecured Bond
Left-Right: (Sitting) Executive Principal Standard Chartered, Amaka Nsefor; Group Managing Director, Dangote Industries Limited, Olakunle Alake; Group Treasurer, Dangote Industries Limited, Mustapha Ibrahim; [Standing] Lead Contracts Unit, Dangote Industries Limited, Sulaiman Zubair; Corporate Finance Specialist, Dangote Industries Limited, Yusuf Agbolahan; Group General Manager, Dangote Industries Limited, Corporate Finance, Tony Esene; at the Dangote Industries Funding Plc, #187,584,545,000.00, 7years & 10-year, Senior Unsecured Fixed Rate Series 1 Tranche A&B Bounds Under the #300,000,000,000, Dangote Industries Funding Plc, Debt Issuances Programme Signing Ceremony, In Lagos on Tuesday, 19 July 2022.

Standard Chartered Capital & Advisory Nigeria Limited acted as the Lead Issuing House and Bookrunner on Transactions, while 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 acted as Joint Issuing Houses.

Commenting on the significance of the Transaction, Mr. Olakunle Alake, Group Managing Director of Dangote Industries, 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 especially thank the investor community for their support on this transaction and our various advisors and stakeholders.”

Also speaking on the transaction, Mr. Olukorede Adenowo, Standard Chartered’s Executive Director, Corporate, Commercial and Institutional Banking, Nigeria & West Africa, said:

“On behalf of the Issuing Houses, we are proud to have led this historic transaction which reflects the strong credit quality of the issuer as well as the resilience of the Nigerian domestic debt capital markets, despite the current global market volatility. We thank the Board and Management of the Dangote Group for continuously striving to develop the domestic debt capital markets and setting records through its various issuances at the subsidiary and Group levels. We also thank the Securities & Exchange Commission, Nigerian Exchange Limited (“NGX”), and FMDQ Securities Exchange Limited (“FMDQ”) for their unwavering support throughout this entire process.”

The Bond notes will be listed on the NGX and FMDQ.

About the Issuer: Dangote Industries is one of the leading, diversified, and fully integrated conglomerates with operations in Nigeria and Africa across a wide range of industries, including cement, sugar, salt, condiments, packaging, and energy, fertilizer, and petrochemicals. Its core business focus is to provide local, value-added products and services that meet the “basic needs” of the African populace through the construction and operation of large-scale manufacturing facilities in Nigeria and across Africa. DIL is focused on building local manufacturing capacity to generate employment, reduce capital flight from Africa and increase local value additions.

The Group has 11 distinct business lines, with the cement, sugar, and salt business currently contributing the majority of the group earnings. These subsidiaries are industry-leading players with strong brand values, underpinned by a long operational track record, diverse customer base, ongoing investments in capacity expansion, and control over their respective value chains. DIL also has two project companies, Dangote Oil Refinery Company Limited (“DORC”) and Dangote Fertilizer Limited (“DFL”), located at the Lekki Free Zone in Lagos State, who (together with DIL) will serve as co-obligors on the Offer. DORC is a 650,000 b/pd integrated crude oil refinery and petrochemical plant, which is expected to be Africa’s largest oil refinery, while DFL is expected to be Africa’s largest granulated urea fertilizer manufacturing facility, with a production capacity of up to 2.8 Mtpa.

DIL is currently domestically rated AA+ by GCR and AA (ngr) by Fitch Ratings.

More information can be found at: https://www.dangote.com/

Capital Market

NGX Celebrates CIS On 30th Anniversary, Reopens Trading Floor

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NGX Celebrates CIS On 30th Anniversary, Reopens Trading Floor

Olushola Okunlade Writes

Nigerian Exchange Limited (NGX) hosted the Chartered Institute of Stockbrokers (CIS) to Closing Gong ceremony to commemorate the Institute’s 30th anniversary alongside the reopening of the trading floor of the market on Monday, 7 November 2022.

The Chairman, NGX, Abubakar Mahmoud, SAN, OON, whilst giving his remarks congratulated the Institute for its contribution to upholding integrity and ethics in the capital market while promoting and protecting the interests of the stockbroking community. He also thanked stockbrokers for their cooperation with NGX, attributing the successful record of trading with zero downtime to a combination of NGX’s investment drive in technology and the collective agility and collaboration between the Exchange and the stockbroking community.

He said, “Thirty years of excellence is no small feat and at the Exchange, we recognise the significance of CIS to the capital market as it engenders commitment to the highest standards of service and professionalism. Its advocacy initiatives and support for the stockbroking and investment practice in Nigeria is notable and worthy of celebration.

“Moving forward as the Exchange, we plan to leverage our shared history and cordial relationship with CIS to further drive growth and value creation in the capital market. NGX wishes the Institute many more years of excellence as it continues to markedly enhance the Nigerian capital market and the broader economy.”

NGX Celebrates CIS On 30th Anniversary, Reopens Trading Floor
Left-Right: Patrick Ajayi, Director, Nigerian Exchange Group; Temi Popoola, Chief Executive Officer, Nigerian Exchange Limited (NGX); Dr. Umaru Kwairanga, Chairman, Nigerian Exchange Group Plc; Oluwole Adeosun, FCS, President, Chartered Institute of Stockbrokers (CIS); Mr. Abubakar Mahmoud, SAN, OON, Chairman, NGX; Haruna Jalo-Waziri, Chief Executive Officer, Central Securities and Clearing System (CSCS) Plc and Tinuade Awe, Chief Executive Officer, NGX Regulation Limited during the Closing Gong Ceremony commemorating CIS 30th year Anniversary and the Re-opening of NGX Trading floor at The Exchange on Monday, 7 November 2022 in Lagos.

The Chairman, NGX Group, Alhaji Umar Kwairanga during his remarks noted that it was to the credit of NGX, NGX Regulation, Central Securities Clearing System (CSCS), NGX Group, and the stockbroking community that trading flowed seamlessly during the forced closure period. He however said, “I also know how physical interactions matter to us brokers and will continue to make sure that we see the impact of us coming back to the trading floor.

“We are also marking this alongside the ceremony commemorating our 30th anniversary and I hope that this is just the beginning of the greater collaboration between brokers, NGX Group as a whole, and the capital market,” he added.

Complementing the Chairmens’ comments, the Chief Executive Officer, NGX, Mr. Temi Popoola said, “NGX will continue to support the initiatives of the institute and cooperate for the further advancement of the capital market.”

The President and Chairman of the Governing Council of CIS, Mr. Oluwole Adeosun underscored the longstanding relationship between CIS and the Exchange. He promised that the Institute would continue to cooperate with NGX Group in its new structure. “A lot has been achieved from the initial foundation built by NGX for CIS. For 32 months, we have been trading seamlessly remotely due to the investments NGX made. We the operators express gratitude to the Exchange and believe we are definitely poised to achieve more together onward.”

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Capital Market

NGX Urges International Breweries Plc To Leverage On Frequent Facts Behind The Figures, Commends Progress Performance

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NGX Urges International Breweries Plc To Leverage On Frequent Facts Behind The Figures, Commends Progress Performance

….International Breweries recorded a remarkable increase of 137.4 percent in operating profiting in H1 2022 – Chiemeka

Olushola Okunlade Writes

The Nigerian Exchange Limited (NGX) on Tuesday, November 1 2022 held the “Facts Behind the Figures Presentation” with International Breweries Plc at the exchange building.

NGX advised the management of International Breweries Plc to sustain its commitment to high standards of corporate governance, social impact, and shareholder value creation.

Divisional Head, Capital Markets, NGX, Mr. Jude Chiemeka while commending the management of International Breweries Plc for leveraging the Facts Behind the Figures platform of the Exchange to increase its engagement with the market and its long-term contributions to socio-economic development in the country since its establishment in 1971 and listing in 1995.

Chiemeka said International Breweries Plc has made other contributions to the social economic development of the communities, “One of such contributions is the Responsible Beverage Service (RBS), a first-of-its-kind intervention program in Nigeria with the objective of contributing to the reduction of alcohol-related harms caused by drunk driving, underage drinking, binge drinking, gender-based violence, and alcohol consumption by pregnant women. This program reiterates the NGX’s mission of bringing people together for a better world.”

NGX Urges International Breweries Plc To Leverage On Frequent Facts Behind The Figures, Commends Progress Performance
Left-Right: Mr. Tony Ibeziako, Head, Primary Markets, Nigerian Exchange Limited (NGX); Mr. Jude Chiemeka, Divisional Head, Capital Markets, NGX; Hugo Dias Rochas, Managing Director, International Breweries Plc; Mrs. Tolulope Adedeji, Marketing Director, International Breweries Plc and Mr. Eduardo Caceres, Executive Director, International Breweries Plc during the Facts Behind the Figures presentation at the Exchange yesterday 1 November, 2022 in Lagos.

“International Breweries recorded a remarkable increase of 137.4 percent in operating profiting in H1 2022 reaching 36.6 billion naira compared to the same period of 2021. This achievement is a result of hard work and resilience by the management team to maintain the company’s financial performance and total revenue of 104 billion. “We would like to recognise these efforts being made by the Board and Management of International Breweries Plc towards achieving continuity by improving business operations and restoring investor confidence in the company.

“With the fast-changing macroeconomic environment in Nigeria and globally, we encourage International Breweries Plc to continue to strive for sustainability by adhering to higher standards of corporate governance, deeper social impact, higher regulatory compliance, and greater returns for shareholders,” Chiemeka added.

NGX Urges International Breweries Plc To Leverage On Frequent Facts Behind The Figures, Commends Progress Performance
Left-Right: Mr. Tony Ibeziako, Head, Primary Markets, Nigerian Exchange Limited (NGX); Mr. Jude Chiemeka, Divisional Head, Capital Markets, NGX; Hugo Dias Rochas, Managing Director, International Breweries Plc and Mr. Eduardo Caceres, Executive Director, International Breweries Plc during the Facts Behind the Figures presentation at the Exchange yesterday 1 November, 2022 in Lagos.

The Managing Director/Chief Executive Officer of International Breweries Plc, Mr. Hugo Dias Rocha during his remarks noted that the company would continue to build brands and invest in a sustainable and profitable business for the long term. “Our team is engaged and living in the AB InBev culture of optimising the growth potential of the business and delivering shareholder value,” he added.

Doyen of Capital Market, Alhaji Yusuf urged the management of International Breweries Plc to leverage on frequent facts behind the figures, while commending the progress performance figures, particularly the first half of 2022.

He said moving from being “Category Leader to Category Performer, Category Performer means making money and paying dividends to your investors, you have not been paying dividends to your investors for six years while promising to advise on how to redeem and restructure the debt.

The Nigerian Exchange Limited (NGX) on Tuesday, November 1 2022 held the “Facts Behind the Figures Presentation” with International Breweries Plc at the exchange building.

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Capital Market

NGX Made Of Africa Awards To Hold December 6

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NGX MADE OF AFRICA AWARDS CEREMONY

Olushola Okunlade Writes

The maiden edition of the NGX Made of Africa Awards (MOA) is scheduled to hold on Tuesday, 6 December 2022.

NGX Made of Africa Awards (MOA) is designed to recognize companies and individuals within the capital market ecosystem that demonstrate exceptional performance in value delivery and sustainable impact and act as key drivers in strengthening the Nigerian and African capital markets.

The NGX Made of Africa Awards (MOA) will hold on December 6, 2022, 06:00 PM West Central Africa.

The Awards also aim to reward adherence to high ethical standards, compliance with the rules and regulations of The Exchange, and other applicable laws and regulations.

Click here to register https://ngxgroup.com/moaa-2022/

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