Dangote raises N188bn to help finance refinery project

By Kanika Saigal
Posted on Tuesday, 19 July 2022 16:17

Aliko Dangote
Aliko Dangote, Chairman of Dangote Industries Limited at the Elysée Palace (rights reserved)

Dangote Industries dispels concerns about the financing of its refinery and cement businesses with the successful raise of N187.6bn on the Nigerian stock exchange.

Dangote Industries Limited (DIL) issued a Series 1 Bond offer under on June 30th this year under its ₦300bn Debt Issuance Programme.

The deal comprised of two tranches of seven and ten years. Each tranche priced at the “higher range” of the initial price guidance, of 12.25% to 12.75% and 13.00% to 13.50% for each tranche respectively, says Abiodun Keripe, managing director, Afrinvest, Research and Consulting.

The bond was oversubscribed, with ₦10bn demand for the sever-year tranche and ₦176bn for the ten-year offering. The deal was approved by the Securities and Exchange Commission of Nigeria (SEC) on 16th July, nearly three weeks after the initial issue.