NGX: Business paper debuts with Dangote Cement’s N119.87bn issuance

Nigerian Alternate Restricted has listed its first Business Paper by admitting Dangote Cement Plc’s Sequence 1 and Sequence 2 Business Papers underneath its N500bn Business Paper Issuance Programme.

In a press release on Wednesday, the native bourse introduced that the 2 sequence, with a mixed worth of N119.87bn, joined buying and selling on the NGX after the Alternate launched the Business Paper itemizing framework final 12 months.

Dangote Cement’s N19.95bn Sequence 1 Business Paper carries a tenor of 181 days and matures on 20 Might 2026, whereas the N99.92bn Sequence 2 issuance has a tenor of 265 days and can mature on 12 August 2026. Each sequence had been issued at a reduction and shall be redeemed on the par worth of N1,000 upon maturity. Sequence 1 and Sequence 2 Business Papers supplied implied yields of 17.50 per cent and 19.00 per cent, respectively.

The Vice Chairman of Highcap Securities Restricted, David Adonri, described the event as an indication of rising sophistication in Nigeria’s short-term debt market, saying, “Dangote Cement’s Business Paper itemizing on NGX alerts rising sophistication in Nigeria’s short-term debt market.” The engaging yields of those devices spotlight robust investor urge for food for high-quality, short-tenor company debt and supply a benchmark for future issuances.”

The NGX said that the itemizing represented a strategic growth of its product choices, deepening the alternate’s fastened revenue market and offering issuers with enhanced visibility, liquidity, and transparency for short-term funding devices.

“By admitting Business Papers to its platform, NGX is strengthening the effectivity of value discovery whereas broadening funding choices for institutional and certified traders searching for diversified short-term devices,” said the Alternate.

Business Papers are unsecured short-term debt devices issued by corporates to fulfill working capital and different short-term financing wants. Their admission to buying and selling on the Alternate introduces larger transparency to a market phase that has historically operated over-the-counter, whereas bettering secondary market tradability.