The Nigerian debt capital market (DCM) has continued to demonstrate agility and resilience in the face of the ongoing COVID-19 pandemic, validating its potential to support economic growth and development as well as propel prosperity in the long-run. This is evident in the renewed confidence shown by market participants and the wider financial market stakeholder community in the potential of the DCM to sustainably meet their short- and long-term funding needs, providing the required support to governments, corporates, and individuals.
Commendably, in what has been a historic period for the Nigerian DCM, even in the face of the economic adversities, which have plagued nations and financial markets around the world, the Dangote Group of Companies, through its subsidiary – Dangote Cement PLC – has raised a total of ₦250.00 billion in debt securities within the six (6) months in 2020, from its recent debut ₦100.00 billion Series 1 Bond (the Dangote Cement Bond) under its ₦300.00 billion Bond Programme, which was 150% oversubscribed, to its earlier issued ₦150.00 billion commercial paper (CP) notes (series 13-16 under its ₦150.00 billion Domestic CP Issuance Programme), all listed and quoted (exclusively), respectively, on FMDQ Securities Exchange Limited (FMDQ Exchange or the Exchange)’s platform. In the same vein, and in support of the market development efforts and initiatives of FMDQ Group, the assets of the Dangote Cement Bond are also lodged with FMDQ’s wholly-owned central securities depository, FMDQ Depository Limited (FMDQ Depository).
Commenting on the recent bond issuance, the Chief Executive Officer of Dangote Cement PLC, Mr Michel Puchercos, said, “This landmark transaction is the largest ever bond issuance by a corporate issuer in Nigeria. It allows us to further broaden our sources of funding by accessing long-term debt at competitive costs from the capital market and builds further on the success of our domestic commercial paper programme. The success of these transactions, in the current challenging environment, illustrates investors’ continuous confidence in Dangote Cement’s strategy, strong cash generation and solid credit profile.”
According to the sponsor of the Dangote Cement issuances on FMDQ Securities Exchange, the Executive Director and Head of Debt Capital Markets for Stanbic IBTC Capital Limited, Mr Kobby Bentsi-Enchill, added that “Stanbic IBTC Capital Limited has a long history of partnering with Dangote Cement PLC, and are delighted to have advised on this landmark corporate bond issuance which reflects the depth and diversity of the Nigerian debt capital markets. The overwhelming success of the transaction despite the challenging environment is a testament to the investor community’s confidence in the strategic vision and financial strength of Dangote Cement. We are exceptionally pleased to see these efforts yielding results and delighted to have successfully assisted Dangote Cement to achieve its financing objectives.”
Also commenting on the sophisticated inventory of issuances by Dangote Cement PLC and its support for and collaboration with FMDQ, the Chief Executive Officer of FMDQ Group, Mr Bola Onadele. Koko, expressed his delight in the admission of these issues, noting that, “the entry of Africa’s premier and largest business conglomerate; Dangote Group, through its subsidiary, Dangote Cement PLC, into the Nigerian DCM since 2018, and its sustained activities so far, having raised over ₦250.00 billion worth of debt securities in the first half of 2020 alone, attests to the viability of the domestic capital markets to efficiently support the efforts of corporates and governments towards building the Nigeria we all desire. According to him, with the active support of its stakeholders, FMDQ has since its inception in 2013, remained committed to making the Nigerian financial market globally competitive, operationally excellent, liquid, and diverse, in line with its “GOLD” Agenda for the transformation of the markets. Through its subsidiaries – FMDQ Exchange, FMDQ Clear Limited, FMDQ Depository and FMDQ Private Markets Limited, FMDQ has continued to champion and deploy dependable and robust capital market solutions as well as active collaborative alliances towards improving the depth of offerings in the Nigerian capital market in order to support easier access to capital, risk management opportunities and value transfer.
FMDQ Group is Africa’s first vertically integrated financial market infrastructure group, providing a one-stop platform for the execution, risk management, clearing, settlement and depository services, as well as data and information across the debt capital, foreign exchange, and derivatives markets.