FMDQ Exchange lists Dangote Industries Funding N300bn bonds on platform

By Chioma Obinagwam

Nigeria’s largest securities exchange by turnover, FMDQ Securities Exchange Limited, through its Board Listings and Markets Committee, has approved the listing of the Dangote Industries Funding PLC ₦187.58 billion Series 1 (Tranche A & B) and ₦112.42 billion Series 2 Senior Unsecured Bonds under its ₦300.00 billion Debt Issuance Programme on its platform.

The Exchange told Confiance News in a statement on Wednesday.

Confiance News further learnt that it is line with its commitment to facilitate growth and development in the Nigerian debt markets and the economy at large by continuously promoting an efficient, transparent, and well-regulated market.

FMDQ also disclosed that the Series 1 and 2 bonds were listed on FMDQ Exchange in November 2022 and March 2023, respectively.

The statement explained that Dangote Industries Funding PLC is a special purpose vehicle set up by Dangote Industries Limited (“Dangote Industries” or the “Issuer”) to raise finance through the listing of debt securities. Dangote Industries is a diversified and fully integrated conglomerate with an annual group turnover of over US$4 billion with vibrant operations in Nigeria and Africa across a wide range of sectors including cement, sugar, salt, condiments, packaging, energy, port operations, fertiliser, and petrochemicals.

To mark this noteworthy achievement, FMDQ Exchange, in keeping with its tradition, held a prestigious listing Ceremony at its offices on Wednesday, March 29, 2023. Present to celebrate the successful admission of the bonds on FMDQ Exchange were the issuer, Dangote Industries Limited, represented by the Group Managing Director, Mr. Olakunle Alake and other representatives of Dangote Industries.

Also present at the Ceremony were the sponsors of the bonds and Registration Member (Listings) of FMDQ Exchange – Standard Chartered Capital and Advisory Nigeria Limited (Lead Sponsor to the Series 1 Bonds), Stanbic IBTC Capital Limited (Lead Sponsor to the Series 2 Bond), Absa Capital Markets Nigeria Limited, Afrinvest Capital Limited, Coronation Merchant Bank Limited, Ecobank Development Company Limited, FBNQuest Merchant Bank Limited, Futureview Financial Services Limited, FCMB Capital Markets Limited, Greenwich Merchant Bank Limited, Quantum Zenith Capital & Investments Limited, Meristem Capital Limited, Rand Merchant Bank Nigeria Limited, United Capital PLC and Vetiva Capital Management Limited (Co-Sponsors to the Bonds), as well as other parties to the issue.

Whilst welcoming the guests to the Ceremony, Ms. Tumi Sekoni, Managing Director, FMDQ Exchange, represented by Ms. Jumoke Olaniyan, Senior Vice President, Business Development Division, FMDQ Exchange, congratulated the issuer and sponsors to the issue for achieving this milestone, noting that their decision to raise funds from the debt markets via the Exchange’s platform was testament to the highly efficient time-to-market and unrivalled listing and quotation service offered by FMDQ Exchange. She also commended the sponsors of the bonds for their concerted efforts towards ensuring the success of the issuances. She reiterated the Exchange’s commitment to continue to innovate and provide efficient services, to support issuers and investors, towards achieving an operationally excellent and globally competitive debt market.

According to Mr. Olakunle Alake, whilst delivering the Special Address, “we thank the investor community, Securities and Exchange Commission, FMDQ Exchange, and our team of professional advisers led by Standard Chartered Capital and Advisory Nigeria Limited and Stanbic IBTC Capital Limited for ensuring successful outings on both our debut and subsequent bond issuances. The Series 1 and 2 bond issuances represent the largest aggregate local currency corporate bond issuances within a calendar year and under a single programme in the history of the Nigerian debt markets. Proceeds of the series 1 and 2 bonds were dedicated to part-financing the Dangote Petroleum Refinery Project which is the initiative by Dangote Group to establish an Integrated Petrochemical Complex, and the largest Single Train Petroleum Refinery in the World. Ultimately, the completion of the refinery would facilitate our ability as a country to meet our local demand for refined crude products, gearing us towards self-sufficiency.” He further stated that, “At Dangote, we remain resolute in our commitment to the Nigerian and African story and continue to demonstrate this through investments in projects and initiatives that directly improve the quality of lives of our people. Indeed, these are very exciting times for us as a business, and we would continue to welcome opportunities to work with stakeholders in the domestic capital markets, towards accelerating economic activities across Africa, whilst maximising stakeholder returns.”

Delivering the sponsor’s remarks, the Chief Executive Officer, Standard Chartered Capital and Advisory Nigeria Limited, Mrs. Yemisi Deji-Bejide, on behalf of the other sponsors to the Series 1 bonds, stated that “Standard Chartered Capital and Advisory Nigeria Limited is proud to have led this historic transaction. The phenomenal success of this transaction reflects the strong credit quality of the issuer as well as the depth and resilience of the Nigerian domestic markets, despite the global market volatility.”

In the same vein, Stanbic IBTC Capital Limited, on behalf of the other sponsors to the Series 2 bond, through its Chief Executive, Mr. Funso Akere, said “Stanbic IBTC Capital Limited has a long history of partnership with Dangote Group and is delighted to have worked with Standard Chartered Capital and Advisory Nigeria Limited and other professional advisers to successfully raise the required funding for Dangote Industries. The Dangote refinery project is a game changer for Nigeria and we thank the board and management of Dangote Industries for trusting the team of professional advisers to deliver two successful landmark bond issuances.”

FMDQ Group, as Africa’s first vertically integrated financial market infrastructure (“FMI”) group, remains committed to providing first-class registration, listing, quotation and noting services, as well as integrated trading, clearing & central counterparty, settlement, and risk management for financial market transactions; whilst offering depository services and data and information services, across the debt capital, foreign exchange, derivatives and equity markets, through its wholly owned subsidiaries – FMDQ Exchange, FMDQ Clear Limited, FMDQ Depository Limited and FMDQ Private Markets Limited. As a sustainability-focused FMI group, FMDQ Group, through FMDQ Exchange, operates Africa’s premier Green Exchange – FMDQ Green Exchange – positioned to lead the transition towards a sustainable future.

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