Aduragbemi Omiyale
By Aduragbemi Omiyale
The management of Dangote Sugar Refinery Plc is requesting about N50 billion from capital market investors for its short-term working capital and funding requirements.
The sugar miller will get the funds from investors through the sale of commercial papers and has promised to repay in about nine months’ time.
The CP sales will be conducted under its N150 billion commercial paper issuance programme approved by the regulatory authorities.
It is the first series the company is selling this time and it specifically has a tenor of 266 days with a discount rate of 15.92 per cent and an implied yield of 18.00 per cent.
Subscription for the exercise opened today, Thursday, February 22, 2024, and will close on Tuesday, February 27, 2024. The minimum amount needed from investors to purchase the paper is N5 million and in multiples of N1,000 thereafter, according to details of the exercise obtained by Business Post.
Dangote Sugar is one of the largest sugar refineries in Sub-Saharan Africa, with a combined installed refining capacity of 1.44 million metric tonnes per annum and a market share of about 55 per cent in the retail space.
The firm, which is a subsidiary of the Dangote Group, boasts 47,364 hectares of sugar plantation and aims to produce 1.5 million metric tonnes of refined sugar annually from its sugarcane in the medium term.
