Nigeria’s capital market reached a new milestone as Dangote Cement Plc launched its first Commercial Paper (CP) issuance on the Nigerian Exchange Limited (NGX). The listing includes Series 1 and Series 2 Commercial Papers, collectively valued at N119.87 billion, under the company’s N500 billion Commercial Paper Issuance Programme. The move follows NGX’s introduction of a formal Commercial Paper listing framework last year, signaling a growing sophistication in the country’s short-term debt market.
The Series 1 CP, valued at N19.95 billion, carries a 181-day tenor and will mature on May 20, 2026, while the Series 2 CP of N99.92 billion has a 265-day tenor, maturing on August 12, 2026. Both instruments were issued at a discount and are redeemable at a par value of N1,000 upon maturity. Investors can expect implied yields of 17.5% for Series 1 and 19% for Series 2, reflecting strong demand for quality short-term corporate debt.
Industry experts have praised the listing as a clear signal of Nigeria’s evolving debt market. David Adonri, Vice Chairman of Highcap Securities Limited, stated, “Dangote Cement’s Commercial Paper listing on NGX signals growing sophistication in Nigeria’s short-term debt market. The attractive yields highlight strong investor appetite and provide a benchmark for future issuances.” The development also emphasizes the increasing appetite among institutional investors for high-yield, short-tenor instruments.
The NGX emphasized that the listing represents a strategic expansion of its offerings, deepening the fixed income market while enhancing transparency, liquidity, and visibility for corporate issuers. According to the Exchange, “Admitting Commercial Papers strengthens price discovery and broadens investment options for institutional and qualified investors seeking diversified short-term instruments.”
Commercial Papers are unsecured short-term debt instruments that companies use to finance working capital and other short-term needs. By bringing CPs onto a regulated exchange platform, NGX introduces much-needed transparency to a segment historically dominated by over-the-counter trading, while also improving tradability in the secondary market. This landmark listing positions Nigeria’s capital market to better serve both issuers and investors seeking reliable short-term funding solutions.
source: punch