Dangote Sugar Launches ₦50 Billion Commercial Paper Issuance for Expansion

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Olori Uwem

Active Member
Mar 18, 2024
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Dangote Sugar Launches ₦50 Billion Commercial Paper Issuance for Expansion

Dangote Sugar Refinery Plc, Sub-Saharan Africa’s largest sugar producer, has unveiled plans to raise ₦50 billion through the issuance of Series 6 and Series 7 commercial papers under its ₦150 billion debt programme. This strategic move aims to bolster its working capital and funding requirements, supporting its ambitious growth agenda.

Key Details of the Offering

1️⃣ Series 6 Commercial Paper
• Tenor: 180 days.
• Discount Rate: 24.9889%.
• Implied Yield: 28.5%.

2️⃣ Series 7 Commercial Paper
• Tenor: 270 days.
• Discount Rate: 24.5524%.
• Implied Yield: 30%.

Offer Timeline: The offer is open to investors until December 12, 2024.

️ Strategic Objectives

The proceeds from this issuance will be channeled toward:
• Enhancing working capital.
• Meeting other funding requirements to sustain and expand operations.

A Regional Giant with Global Aspirations

Dangote Sugar is a major player in Africa’s sugar industry, boasting a combined refining capacity of 1.49 million metric tonnes per annum. As part of its backward integration program, the company is working to add an additional 1.5 MMT of refined sugar from locally grown sugarcane. This aligns with its goal of becoming a global leader in integrated sugar production.

Why This Matters

This commercial paper issuance highlights Dangote Sugar’s strategic focus on growth and innovation in a highly competitive sector. Investors are offered an opportunity to participate in the company’s vision, with high yields of up to 30% on offer.

Will you consider investing in Dangote Sugar’s latest offering? Let’s discuss how this aligns with your portfolio goals! ✨