Dangote Sugar Refinery Plc has launched an offering to raise N50bn from debt capital market investors through the issuance of Series 6 and Series 7 commercial papers under its N150bn debt programme.
According to Market Watch, the Series 6 commercial paper, which has a 180-day tenor, is being offered with a 24.9889 per cent discount rate, providing an implied yield of 28.5 per cent to investors. The Series 7 commercial paper, with a 270-day tenor, is priced at a 24.5524 per cent discount rate, offering an implied yield of 30 per cent.
Investment banking firms have indicated that the offer will be open to the investing public until December 12, 2024. The company plans to use the proceeds from the commercial paper issuance to support its working capital and other funding requirements.
As Sub-Saharan Africa’s largest sugar refinery, Dangote Sugar boasts a combined installed refining capacity of 1.49 million metric tonnes per annum. In the medium term, the company is aiming to add an additional 1.5 MMT of refined sugar from locally grown sugarcane as part of its backward integration plan, positioning itself as a leading global integrated sugar producer.
The ongoing commercial paper offering marks another step in Dangote Sugar’s strategic growth, with the proceeds expected to boost its operational and expansion efforts, Marketwatch added.
All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express written permission from PUNCH.
Contact: [email protected]
