Dangote Sugar Opens 181-day C/Papers for Subscription at 20.65%

Dangote Sugar Refinery Plc has opened its series four and five commercial papers for subscription at the coupon rate of 20.6511% for 181-day bills, translating to 23% yield on investment placement.

The company’s also open commercial paper with 265 days tenor at 21.1669% or 25% yield to investors in the market. The company valued at about N486 billion on the Nigerian Exchange on Thursday seeks to raise up to N50 billion with less than one year repayment plan.

The Sub-Saharan Africa’s largest sugar refinery, with a combined installed refining capacity of 1.49 MMT per annum is expected to use the proceeds to support its working capital and meet other short term funding needs.

In its note, Afrinvest Limited said in the medium term, the company is targeting an additional 1.5MMT of refined sugar from locally grown sugarcane and is on track to becoming a leading global integrated sugar producer with its backward integration plan.

The Series 4 and 5 Commercial Paper offer of up to ₦50 billion comes under its Dangote Sugar Refinery Plc’s ₦150 billion commercial paper issuance programme registered with the regulators.

The sugar refinery is subsidiary of Dangote Industries Limited and is engaged in the refining, distributing, and marketing of granulated sugar to wholesalers and top players in the skin care, food and beverage, and pharmaceutical industries.

The offers have been opened and scheduled to close on Wednesday, 22 May 2024. Investors can invest minimum of N5 million in the commercial paper and then N1,000 thereafter Reps Threaten to Cancel PPP, Concessions, Invite Minister of Transport, NRC
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