BREAKING NEWS: Corporate Bonds listing on NGX rises 166% to N176.4 bn in Q3’22

Four Nigerian companies listed corporate bonds worth N176.4 billion on the Nigerian Exchange Limited, NGX in order to improve their balance sheet and scale up their operations in the third quarter) of the year, Q3’22.

This represents a 166 per cent, year-on-year, increase over the N66.3 billion recorded in the corresponding period of 2021, Q3’21.

Vanguard’s analysis shows that 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 this year and listed it on the Exchange during the period under review.

Dangote Cement during the issuance of the bonds 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.”

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

It listed N34, 500,000,000, 7 years 12.85% Senior Unsecured Fixed Rate Series I Bonds due in 2029 under the N50,000,000,000.00 bond issuance Program on the Exchange in the period under review.

Managing Director of Presco Plc, Mr Felix Nwabuko, said : “The bond attracted participation from a wide range of investors including pension funds, asset managers, insurance companies, banks and high-net-worth individuals due to increase in the Central Bank of Nigeria, CBN’s Monetary Policy Rate. ”

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%.

ABC Transport Plc was the next that listed its bond on the Exchange with the listing of N900,000,000 , 16.50% Senior Secured Fixed Rate Bond due 2027.

LFZC Funding SPV Plc followed on the listing list with SPV Plc’s N25 Billion, 20- Year 13.25% Series 2 Senior Guaranteed Fixed Rate Infrastructure Bonds due 2042 under the fifty billion bond issuance program.