Dangote Set To Borrow N112 Billion From Nigerians To Complete Refinery Project, To Repay In 10yrs

Dangote Industries Limited has resolved to borrow N112 billion from investors to complete its refinery project. To complete the project, the company requires an additional $1.1 billion to be partly funded by the new bond this year.

The N112 billion balance is the N300 billion bond raised by DIL in July last year.

The bond proceeds will be used to partially fund the refinery project, which is set to begin operations in the first half of 2023.

Afrinvest West Africa Limited, the joint issuing house, said in a note to investors that the latest N112,415,455,000 bond with a tenor of ten years would be available to the public in the coming days.

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According to BusinessDay, DIL issued a Series 1 Bond offer on June 30 this year as part of its N300 billion debt issuance program.

Abiodun Keripe, Managing Director of Afrininvest Research and Consulting Limited, stated that the transaction was divided into two tranches with terms of seven and ten years.

Keripe added:
“Each tranche priced at the ‘higher range of the initial price guidance, of 12.25 percent to 12.75 percent and 13.00 percent to 13.50 percent for each tranche respectively” The bond was oversubscribed with N10 billion demand for the seven-year tranche and N176 billion for the 10-year offering.