The Nigerian Exchange Limited (NGX) 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.
The NGX said in a statement on Wednesday 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.
The Dangote Cement’s N19.95bn Series 1 Commercial Paper carries a tenor of 181 days and matures on May 20, 2026, while the N99.92bn Series 2 issuance has a tenor of 265 days and will mature on August 12, 2026.
The two 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.
Speaking on the commercial papers, 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,” the Exchange said.
Commercial Papers are unsecured short-term debt instruments issued by corporates to meet working capital and other short-term financing needs.
The 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.
GIK/APA