Corporate bonds

Companies raise 246 billion naira from corporate bonds in the first half | The Guardian Nigeria News

The dormant primary equity segment of the Nigerian capital market prompted listed companies to rely on the bond market to raise funds, as six Nigerian companies issued corporate bonds worth $246.28 billion. naira to improve their balance sheet and scale up their operations during the semester. – fiscal year (H1) ended June 30, 2022.

The Nigerian stock market has been in continuous decline with occasional failed recovery attempts since late March 2007 until 2020, when the performance index climbed 50%, making Nigerian stocks the best performing in the world.

For some time now, stock prices have been falling and many investors are still counting their losses.

As a result, most companies are now resorting to other means of raising capital, exploring opportunities in the bond market while avoiding equities.

For example, Dangote Cement raised N116 billion through the largest corporate bond issue in the history of the Nigerian capital market.

The company announced that it has completed the issuance of N116 billion Series 2 fixed rate senior unsecured notes under its N300 billion multi-instrument issuance program.

According to the company, the bond issue consisted of three tranches: a 5-year tranche A issue priced at 11.85%, a 7-year tranche B issue priced at 12.35% and a of the 10-year tranche C at the price of 13.00 percent. hundred.

The company said the bond issue attracted participation from a wide range of institutional investors, including pension funds, asset managers, banks, insurance companies and high net worth individuals.

He also said the purpose of the fundraiser was to finance Dangote’s expansion plans.

He said: “Proceeds from the bond issue will be used to fund the company’s expansion plans in Nigeria, short-term debt refinancing and working capital requirements.”

Presco Plc also issued a N34.5 billion corporate bond. Presco Plc recently announced the issuance of N34.5 billion 7-year Series 1 Fixed Rate Notes under its N50 billion bond issuance programme.

Additionally, Ardova Plc listed N25.3 billion of corporate bonds. FMDQ Securities Exchange Limited, through its Board Registration and Markets Committee, has recently admitted listing of the N11.44 billion Series 1 Fixed Rate Notes Tranche A and the Tranche B of N13.86 billion under its N60.00 billion bond issuance program on its platform.

The 7- and 10-year tranches provide Ardova with much-needed flexibility to expand its operations and increase its presence across the country.

In addition, Access Holdings recently announced the closing of $50 million (N20.98 billion) green bonds.

The bank has announced the successful closing of its $50 million (N20.98 billion) Reg S Step-Up Green Notes due 2027 in the international capital market.

The bank disclosed this in a statement posted on the Nigerian Exchange Ltd website. (NGX).

The green bond was issued with a coupon of 5.50% in the first two years, then changes (on the date of the put option) to 7.25% in the last three years until the end of the bond. maturity, with interest payable semi-annually in arrears. This is Access Bank’s second green bond issue, following its first Naira green bond issue in 2019.

Shelter Afrique also issued a N46 billion corporate bond.

The company has announced the successful completion of its first N46 billion ($110.7 million) Series 1 fixed rate senior unsecured bond issue in the Nigerian capital market under its investment program. 200 billion naira ($481.3 million) bond issue.

The two-tranche bond issue was 60.7% oversubscribed with an order book reaching N3 billion ($154.6 million), allowing Shelter Afrique to exercise the ‘green shoe’ option and raise an additional 6 billion naira ($14.4 million) more than the initial N40. billion dollar plan ($96.3 million).

Eat & Go Finance SPV Plc has listed a N3.50 billion Series 2 fixed rate bond. FMDQ Securities Exchange Limited has admitted to listing on its platform the N3.50 billion Eat & Go Finance SPV PLC fixed rate bond under its N15.00 billion bond issuance program of naira.

According to the company, Eat & Go Finance SPV Plc is a special purpose finance vehicle established by Eat ‘N’ Go Limited to raise funds in the debt capital market through the listing of debt securities.