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Dangote Industries completes $452-million bond issuance

Nigerian billionaire Aliko Dangote

Dangote Industries Limited, a diversified manufacturing conglomerate led by Africa’s richest man Aliko Dangote, has completed its N187.6-billion ($452 million) Series-1 bond issuance, which is intended to fund the completion of the $19-billion Dangote Oil Refinery.

The bond program, which represents a watershed moment for the Aliko Dangote-led manufacturing conglomerate, is also the largest corporate bond ever issued in the history of the Nigerian capital market.

The bond issuance, which took place under a newly established N300-billion ($723 million) debt issuance program, consists of a seven-year Tranche-A bond issued at 12.75 percent and a 10-year Tranche-B bond issued at 13.50 percent.

The bond’s book-building period ended nearly three weeks after Dangote Industries applied for up to N300 billion ($723 million) in medium-term debt funding from Nigerian investors to finance the completion of his integrated refinery and petrochemical complex.

Olakunle Alake, group managing director of Dangote Industries, commented on the transaction, stating: “The success of this transaction further demonstrates investor confidence in our credit story and the appreciation of the work done by the group across several key sectors that are crucial to the development of the continent.”

“The proceeds from this landmark transaction will be used to part-finance the Dangote Petroleum Refinery Project, which is an initiative by the group to establish the largest refinery in Africa, thus positioning Nigeria as a net exporter of refined crude,” he added.

Dangote Industries is a Nigerian manufacturing conglomerate. It ranks as Africa’s most diversified conglomerate through its controlling stake in Africa’s largest cement company Dangote Cement and its fertilizer and oil-refinery businesses.

The $452 million in proceeds from the medium-term debt funding are still far short of the $1.1 billion required to complete the refinery project by 2023, according to U.S. credit rating agency Fitch Ratings.

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Given the significance of the refinery’s cash-flow contribution to Dangote Industries’s deleveraging capacity, Fitch Ratings explained that completing the refinery project on time is critical for the company’s financial health, as only limited delays or cost overruns are tolerated in its current financial rating.

 

Source: billionaires.africa

Ogyem Solomon

Solomon Ogyem – Media Entrepreneur | Journalist | Brand Ambassador Solomon Ogyem is a dynamic Ghanaian journalist and media entrepreneur currently based in South Africa. With a solid foundation in journalism, Solomon is a graduate of the OTEC School of Journalism and Communication Studies in Ghana and Oxbridge Academy in South Africa. He began his career as a reporter at OTEC 102.9 MHz in Kumasi, where he honed his skills in news reporting, community storytelling, and radio broadcasting. His passion for storytelling and dedication to the media industry led him to establish Press MltiMedia Company in South Africa—a growing platform committed to authentic African narratives and multimedia journalism. Solomon is the founder and owner of Thepressradio.com, a news portal focused on delivering credible, timely, and engaging stories across Ghana and Africa. He also owns Press Global Tickets, a service-driven venture in the travel and logistics space, providing reliable ticketing services. He previously owned two notable websites—Ghanaweb.mobi and ShowbizAfrica.net—both of which contributed to entertainment and socio-political discussions within Ghana’s digital space. With a diverse background in media, digital journalism, and business, Solomon Ogyem is dedicated to telling impactful African stories, empowering youth through media, and building cross-continental media partnerships.

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