Tuesday, May 10, 2022 / 03:59 PM / by Afrinvest Research / Header Image Credit: Dangote Industries Limited

We are pleased to inform you of the imminent launch of the Dangote Industries Funding PLC (the “Issuer”) Series 1 Bond offer comprising of Tranche A – 7-year and Tranche B – 10-year, Fixed Rate Senior Unsecured Bonds, under its ₦300 billion Debt Issuance Programme (the “Offer”). The Issuer is a funding vehicle incorporated by Dangote Industries Limited (“Dangote Industries”, “DIL” or the “Group”) to access the domestic capital markets.
 
Dangote Industries is one of the leading, diversified and fully integrated conglomerate with operations in Nigeria and Africa across a wide range of industries, including cement, sugar, salt, condiments, packaging, energy, fertiliser and petrochemicals. Its core business focus is to provide local, value-added products and services that meet the "basic needs" of the African populace through the construction and operation of large-scale manufacturing facilities in Nigeria and across Africa. DIL is focused on building local manufacturing capacity to generate employment, reduce capital flight from Africa and increase local value additions.
 
 The Group has 11 distinct business lines, with the cement, sugar and salt business currently contributing majority of the group earnings. These subsidiaries are industry leading players with strong brand values, underpinned by long operational track record, diverse customer base, ongoing investments in capacity expansion and control over their respective value chains. DIL also has two project companies, Dangote Oil Refinery Company Limited (“DORC”) and Dangote Fertilizer Limited (“DFL”), located at the Lekki Free Zone in Lagos State, who (together with DIL) will serve as co-obligors on the Offer. DORC is a 650,000 b/pd integrated crude oil refinery and petrochemical plant, which is expected to be Africa's largest oil refinery, while DFL is expected to be Africa’s largest granulated urea fertiliser manufacturing facility, with a production capacity of up to 2.8 Mtpa.
 
 DIL is currently rated AA+ by GCR and AA (ngr) by Fitch Ratings, and plans to utilise the net proceeds from the Series 1 bond issuance to finance the Dangote Petroleum Refinery Project which is currently scheduled to commence operations in the first half of 2023.
 
 Other indicative terms of the Offer are as presented below:

For more information, please refer to the documents listed below.
 1. Audited Financial Statements (2016 to 2020)
 2. GCR’s Issuer and Bond Rating Reports
 3. Fitch’s Issuer Rating Notification