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

Nigerian Exchange Limited has listed its first Commercial Paper by admitting Dangote Cement Plc’s Series 1 and Series 2 Commercial Papers under its N500bn Commercial Paper Issuance Programme.

In a statement on Wednesday, the local bourse announced that the two series, with a combined value of N119.87bn, joined trading on the NGX after the Exchange introduced the Commercial Paper listing framework last year.

Dangote Cement’s N19.95bn Series 1 Commercial Paper carries a tenor of 181 days and matures on 20 May 2026, while the N99.92bn Series 2 issuance has a tenor of 265 days and will mature on 12 August 2026. Both series were issued at a discount and will be redeemed at the par value of N1,000 upon maturity. Series 1 and Series 2 Commercial Papers offered implied yields of 17.50 per cent and 19.00 per cent, respectively.

The Vice Chairman of Highcap Securities Limited, David Adonri, described the development as a sign of growing sophistication in Nigeria’s short-term debt market, saying, “Dangote Cement’s Commercial Paper listing on NGX signals growing sophistication in Nigeria’s short-term debt market.” The attractive yields of these instruments highlight strong investor appetite for high-quality, short-tenor corporate debt and provide a benchmark for future issuances.”

The NGX stated that the listing represented a strategic expansion of its product offerings, deepening the exchange’s fixed income market and providing issuers with enhanced visibility, liquidity, and transparency for short-term funding instruments.

“By admitting Commercial Papers to its platform, NGX is strengthening the efficiency of price discovery while broadening investment options for institutional and qualified investors seeking diversified short-term instruments,” stated the Exchange.

Commercial Papers are unsecured short-term debt instruments issued by corporates to meet working capital and other short-term financing needs. Their admission to trading on the Exchange introduces greater transparency to a market segment that has traditionally operated over-the-counter, while improving secondary market tradability.

Source: https://punchng.com/ngx-commercial-paper-debuts-with-dangote-cements-n119-87bn-issuance/