By Ayomide Otitoju
Dangote Sugar Refinery Plc has unveiled a plan to raise N50 billion from investors in the debt capital market through the issuance of Series 6 and Series 7 commercial papers, under its N150 billion debt programme.
According to Market Watch, the Series 6 commercial paper has a 180-day tenor, offered at a 24.9889 percent discount rate, translating to an implied yield of 28.5 percent for investors. The Series 7 paper, with a 270-day tenor, is priced at a 24.5524 percent discount rate, offering an implied yield of 30 percent.
Investment banking sources disclosed that the offer will remain open to the investing public until December 12, 2024. Proceeds from the issuance are intended to bolster the company’s working capital and meet other funding needs.
Dangote Sugar, the largest sugar refinery in Sub-Saharan Africa, boasts a combined installed refining capacity of 1.49 million metric tonnes annually. As part of its medium-term strategy, the company plans to add an additional 1.5 million metric tonnes of refined sugar from locally grown sugarcane under its backward integration plan, aiming to establish itself as a global leader in integrated sugar production.
The ongoing commercial paper issuance represents a significant step in Dangote Sugar’s expansion strategy, with funds expected to enhance its operational capacity and growth initiatives, Market Watch noted.
