Global Upfront Newspapers
Business Cover News

Dangote Bond: CSCS confident about depository service to investors

The Central Securities Clearing System (CSCS) has given an assurance that it is capable of selling and clearing all secondary market transactions on debit notes, regardless of the Exchange where it was traded.

They made the assurance ahead of the debut of Dangote Cement N100 billion bonds issue in the debt capital market.

Dangote Cement Plc by this huge issue is set to join other issuers like Access Bank Plc, United Bank for Africa (UBA) Plc, Lafarge Africa Plc, Flour Mills of Nigeria (FMN) Plc etc that had raised long term debt financing in the Nigerian debt capital market.

The bond is the first tranche of the company’s N300 billion Shelf programme. The book-building process for the 5-year fixed-rate senior unsecured bonds commenced on Friday, April 3, 2020, to close on Tuesday, April 14, 2020, with the settlement date being Friday, April 17, 2020.

According to offer documents, the bond is open to both retail and institutional investors through any of the Joint Lead Arrangers, with a minimum investment of N10 million (10,000 units at N1,000/unit) and multiples of N1,000.

It would be redeemed at maturity of 5 years but pays semi-annual coupon. CSCS Managing Director, Mr Haruna Jalo-Waziri said of the offer, “Beyond the impact of the Dangote Cement debit transaction on the primary market, the size and the strong investment grade rating of the Dangote Cement bond should enhance its secondary market liquidity, particularly as it is expected to be listed on both the Nigerian Stock Exchange and FMDQ Exchange.

“With CSCS having full coverage of the market, it is well-positioned to clear and settle all secondary market transactions on the debit notes, going forward, notwithstanding the Exchange, where it is traded.

“With over N530 billion outstanding corporate debt issues and slightly less than N400 billion outstanding sub-national bonds, the Nigerian debt capital market is increasingly becoming a viable source of long-term funding for both corporates and state governments,” Jalo-Waziri insisted.

He went further to say: “With this debut N100 billion debt note, Dangote Cement Plc is once again reinforcing the capacity of the Nigerian debt capital market and setting a new benchmark in terms of size and pricing of corporate bonds.

 “ CSCS, being the depository to about half a trillion-naira outstanding corporate bonds from twenty-three issuers, we are excited to onboard Dangote Cement bonds into our depository post the Securities and Exchange Commission ( SEC) approval of allotments. We are excited at working with all stakeholders – the issuer, joint lead arrangers, Exchanges and more importantly esteemed investors – Pension Fund Administrators (PFAs), banks, asset managers, trustees, custodians and brokerage firms, who would be participating in this landmark transaction.

“We earnestly look forward to the approved allotment schedule to promptly credit investors’ accounts and provide a consolidated view of all their investments across the capital market. “Dangote Cement Series 1 bond is a landmark transaction for the Nigerian debt capital market, as it will be the largest-ever single corporate debt issue in the Nigerian capital market, similar to the Dangote Cement N150 billion Commercial Paper (CP), which has helped deepen that segment of the money market and broaden local investors’ investment options in the fixed income market, the Series 1 bond, which is the debut issue out of the N300 billion Shelf Programme, will further reinforce the potential depth of the Nigerian debt capital market and the ability of local corporates to fund long term projects from the domestic debt market,” Jalo-Waziri added.

Advertize With Us

See Also

Famous Nigerian Singer, Omawumi, Hubby Tosin Yussuf Celebrate 4th Wedding Anniversary

Global Upfront

IPOB/ESN Suffered “Heavy Casualties” During Attack On Agwa Oguta LGA Imo State Station, Says Police

Global Upfront

NIGERIA’S SECRET PROBE IN US/ Jonathan to Buhari: I Wish You Good Luck, I Have No Account, Property Outside Nigeria

Global Upfront

Alleged Recording: Private Medical Practitioners Demand Public Apology From ARISE TV

Global Upfront

Father kidnaps own daughter, demands N2m ransom from his wife

Global Upfront

South Africa scientists say up to 50,000 COVID-19 deaths possible

Global Upfront

Queen Elizabeth II Wasn’t Innocent of Her Empires Sins

Global Upfront

Don’t Implement Anti-open Grazing Law In Anambra State Now, Miyetti Allah Begs Governor Soludo

Global Upfront

Iran, China sign huge 25-year strategic deal that could reduce US regional influence in Middle East

Global Upfront

FRSC disciplines officials who almost assaulted lady for spedding off with Policeman on her car bonnet

Global Upfront

This website uses Cookies to improve User experience. We assume this is OK...If not, please opt-out! Accept Read More