Nigerian Companies Raise N246.28 Billion From Corporate Bonds In 6 Months

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Six Nigerian companies issued corporate bonds worth N246.28 billion in order to improve their balance sheet and scale up their operations during the half-year ended June 30, 2022.

SKYTREND NEWS tracks major deals consummated in the Nigerian corporate scenes with emphasis on companies that have their major operations in the country or with significant interest in Nigeria.

Below is a compilation of deals announced during the half-year. The information was sourced from news reports, press releases amongst other reliable sources.

Nigerian Companies Raise N246.28 Billion From Corporate Bonds In 6 Months

Dangote Cement raised N116 billion corporate bond

Dangote Cement, Sub-Saharan Africa’s largest cement producer raised N116 billion in the largest corporate bond issuance in the history of the Nigerian capital market.

  • Dangote Cement during the period under review stated that it has completed the issuance of N116 billion series 2 fixed rate senior unsecured bonds under its N300 billion multi-instrument issuance programme.
  • The Bond Issuance comprised three tranches: a 5-year Tranche A issuance priced at 11.85%, a 7-year Tranche B issuance priced at 12.35%, and a 10-year Tranche C issuance priced at 13.00%.
  • The company in a statement said that the Bond Issuance attracted participation from a wide array of institutional investors, including pension funds, asset managers, banks, insurance companies and high-net-worth individuals.
  • The company also stated that the objective of the fundraising was to finance Dangote’s expansion projects. It said, “The proceeds of the Bond Issuance will be used to finance the Company’s Nigeria expansion projects, short-term debt refinancing and working capital requirements.”

Shelter Afrique issued N46 billion corporate bond

Shelter Afrique, the pan-African development finance institution, announced the successful completion of its debut N46 billion ($110.7 million) Series 1 Fixed Rate Senior Unsecured Bond Issuance in Nigeria’s capital market under its N200 billion ($481.3 million) bond issuance programme.

  • The dual-tranche bond issuance was 60.7% oversubscribed with the order book peaking at N3 billion ($154.6 million), enabling Shelter Afrique to exercise the ‘green shoe’ option and raise an additional N6 billion ($14.4 million) more than the original N40 billion plan ($96.3 million).
  • The 5-year Tranche A bonds priced at 13.00% and the 7-year Tranche B bonds priced at 13.25%. The tenors of the bonds are aligned with the institution’s housing finance strategy and long-term plans in Nigeria. Shelter Afrique will use the bond proceeds to fund mass housing development by tier 1 real estate developers and to provide lines of credit.

Presco Plc issues N34.5 billion corporate bond

Presco Plc during the period under review announced the issuance of N34.5 billion Series 1 7-year Fixed Rate bonds under its N50 billion bond issuance programme.

  • The disclosure was contained in a statement issued by the Managing Director of Presco Plc, Mr Felix Nwabuko.
  • Nwabuko said that the bond attracted participation from a wide range of investors including pension funds, asset managers, insurance companies, banks and high-net-worth individuals.
  • Nwabuko, during the bond issue signing ceremony at the company’s office in Benin, commended institutional investors for supporting the transaction, adding that it was 24% subscribed and priced at a coupon rate of 12.85%.

Ardova Plc listed N25.3 billion corporate bonds

FMDQ Securities Exchange Limited through its Board Listings and Markets Committee admitted the listing of the Ardova Plc N11.44 billion Tranche A and N13.86 billion Tranche B Series 1 Fixed Rate Bonds under its N60.00 billion Bond Issuance Programme on its platform.

  • The Chief Executive Officer, Ardova Plc, Mr. Olumide Adeosu said: “We are humbled by the warm reception of our Tranche A and Tranche B Series 1 bonds issued by Nigeria’s ever-growing institutional investor community.
  • The 7-year and 10-year tranches provide Ardova with the much-needed flexibility to expand our operations and increase our footprint across the country.

Access Holdings announced closure of $50 million (N20.98 billion) green bonds

Access Holdings PIc announced the successful closure of its $50 million (N20.98 billion) Reg S Step-Up Green Notes due 2027 in the international capital market.

The company disclosed this in a statement made available on the website of the Nigerian Exchange Ltd. (NGX).

  • The Green Bond was issued with a coupon of 5.50% in the first two years and then steps up (on the put option date) to 7.25% in the last 3 years to maturity, with interest payable semi-annually in arrears. This is Access Bank’s second Green Bond issuance, following its initial Naira Green Bond issuance in 2019.
  • The statement partly reads, “Access Holdings PIc is pleased to announce that its banking subsidiary – Access Bank Plc- (rated ‘B’ l stable outlook by Fitch and ‘B2’ negative outlook by Moody’s)-a leading full service Nigerian commercial bank with presence in 17 countries has successfully priced a US$50 million Reg S Step-Up Green Notes due 2027 in the international capital market via a private placement.”

Eat & Go Finance SPV Plc listed N3.50 billion Series 2 Fixed Rate Bond

FMDQ Securities Exchange Limited admitted for listing on its platform, the Eat & Go Finance SPV PLC N3.50 billion Series 2 Fixed Rate Bond under its N15.00 billion Bond Issuance Programme.

  • According to the company, Eat & Go Finance SPV Plc is a special purpose funding vehicle established by Eat ‘N’ Go Limited to raise finance from the debt capital market through the listing of debt securities.
  • Eat ‘N’ Go is a master franchisee for the Domino’s Pizza, Cold Stone Creamery and Pinkberry Gourmet Frozen Yoghurt brands with over a hundred stores established in nine states across Nigeria.
  • The proceeds generated from the Eat & Go SPV Plc Series 2 Bond, which is sponsored by Chapel Hill Denham Advisory Limited, a Registration Member (Listings) of the Exchange, will be used to fund reserve accounts and offset the costs of the Company’s capital expenditure, amongst others.