RMB in Nigeria is proud to have worked alongside Dangote Industries Limited (“Dangote Industries”) to facilitate the largest corporate bond issuance in the history of the Nigerian capital markets.
The landmark ₦187.58 billion Series 1 issuance is aimed at part-financing the completion of the Dangote Petroleum Refinery Project, a key infrastructure project for Nigeria and West Africa, which is currently scheduled to commence operations in the first half of 2023.
Chidi Iwuchukwu, Co-Head Banking Division, Rand Merchant Bank Nigeria Limited, commented: “We are delighted to have worked on this landmark transaction and are grateful to the board and management of Dangote Industries Limited for appointing us as Joint Issuing House and Bookrunner. RMB provided valuable advice in the evaluation, marketing and execution of the transaction.
The success of the transaction reflects the strong credit quality of Dangote Industries Limited and the growing resilience of the Nigerian debt capital markets. We remain a long-term partner and trusted adviser to Dangote Industries Limited and its subsidiary companies,” concludes Iwuchukwu.
Dangote Industries is a leading, diversified and fully integrated conglomerate with operations in Nigeria and Africa with 11 distinct business lines across a wide range of industries; including cement, sugar, salt, condiments, packaging, energy, fertiliser and petrochemicals. Dangote Industries via its funding vehicle, Dangote Industries Funding Plc, sought to raise ₦150 billion via the Series 1 bond offer with the option to upsize under its ₦300 billion Debt Issuance Programme. The Series 1 bond offer comprised of Tranche A: 7-year and Tranche B: 10-year, Senior Unsecured Fixed Rate Bonds (“the Bond”).
Despite rising yields and tightening liquidity environment, the Bond was well received by the market and recorded participation from a wide range of investors including domestic pension funds administrators (“PFAs”), asset managers, banks, insurance companies and high net-worth investors. The total bids received was ₦198.18 billion representing a subscription of 1.33x of which ₦187.58 billion was within the advised price range. The remarkable participation is a clear demonstration of the strength and acceptance of Dangote Industries brand, trust placed by the investor community in Dangote Industries leadership, strong financial performance and corporate strategy. RMB in Nigeria has over 15 years of transactional experience ranging from advisory on infrastructure projects, execution of key merger and acquisition mandates, to the provision of innovative and bespoke funding solutions to support transactions across a range of sectors.
As part of the Corporate & Investment Banking Division of the FirstRand Group, the largest listed financial services group (by market capitalisation) in Africa, RMB’s business strategy leverages a market leading origination franchise to deliver an integrated value proposition to corporate and institutional clients across Africa.
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