We issued bonds to open up our projects to Nigerians — Dangote

The management of Dangote Industries Limited (DIL), the parent company for the Dangote Group, has said the recourse to the capital market to raise funds for its projects was a deliberate decision to allow Nigerians to be part of the group’s projects.

Speaking against the background of the listing of its N300 billion Series 1 and 2 bondson the Nigerian Exchange (NGX) and FMDQ Securities Exchange (FMDQ Exchange), the holding company stated that the landmark bond issuance by DIL was an opportunity for Nigerians to partake as co-financiers of the group’s projects.

DIL, had through its special purpose vehicle, Dangote Industries Funding Plc, raised two tranches of bonds totalling N300 billion, setting a record as the largest aggregate naira-denominated bond to be issued by a company within a year in the Nigerian market.

Group Managing Director, DIL, Mr. Olakunle Alake, said the decision of the company to issue bonds to raise the required capital for part-financing of its 650,000 barrels per day (bpd) Dangote Refinery project was to encourage the participation of Nigerians in the financing of the project.

According to him, following the rigorous internal assessment, the management concluded that tapping the local capital markets was inevitable, considering the sheer scale of the project being developed, as well as the market volatility.

He said while the Dangote Group is not new at raising funds in the local capital market, being a first-time issuer at the holding company level presented a fresh challenge for the company. However, the challenge was one the management was willing to embrace to ensure the desired outcome was achieved.

He pointed out that the net proceeds of the N300 billion bonds would be used primarily for part-financing of the group’s 650,000 bpd refinery project.

“Today, we are delighted to have successfully completed the largest aggregate local currency bond issuance by a corporate in the Nigerian capital markets within a calendar year. The proceeds from the Series 1 and 2 bond issuances were dedicated to part-financing the Dangote Petroleum Refinery Project which is the initiative by the group to establish an integrated petrochemical complex, and the largest single train petroleum refinery in the world,” Alake said.

He noted that the DIL recorded another first through the N187 billion series 1 bonds, under the N300 billion programme, being the largest corporate bond issued in the history of the capital market.


He said the company was pleased to have set the remarkable milestones, showcasing the depth, resilience and liquidity of the domestic capital markets, while reflecting the strong credit quality of the Dangote Group, despite the global market volatility.

He added that the bonds issuances were 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.

“Indeed, the reception of the market was buoyed by the strategic importance of the project and its expected impact on the Nigerian economy. Overall, we strongly believe the success of the Series 1 and 2 bond issuances 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 Nigeria and the continent at large,” Alake said.

He assured that the company would remain resolute in the Nigerian and African story and continue to demonstrate commitment, as one of the foremost pan-African conglomerates, through investments in projects and initiatives that directly improve the quality of lives of Nigerians.

“Indeed, these are very exciting times for us as a business, and so we would continue to welcome opportunities to work with stakeholders in the domestic capital markets towards accelerating the economic activities across Africa, whilst maximising stakeholder returns,” Alake said.

The lead Issuing House for series 1 of the bonds and Chief Executive Officer, of Standard Chartered Capital & Advisory Nigeria Limited, Mrs. Yemisi Deji-Bejide, said Dangote Group had been setting records at the Nigerian market, citing Dangote Cement’s 2022 bond issuance, which was the largest corporate bond issuance at the time.

Deji-Bejide described the success of the transaction as a strong testament to the fact that investors strongly believe in Dangote Group’s credit story and are willing to continue to support the growth of the business.

She added that the issuances demonstrated the depth of the Nigerian capital markets and resilience, despite all the volatility in the global markets and the macro headwinds.

“Lastly and most importantly, investors are keen to support impactful infrastructure projects in Nigeria, as the proceeds of the bond are being used to fund the largest single train refinery in the world,” Deji-Bejide said.