Dangote Sugar Seeks To Raise N50bn From Debt Market
Yinka Olajoyetan, Lagos
Dangote Sugar Refinery Plc has opened up its commercial paper offerings for subscription from debt capital market investors. The refinery is in the market to raise N50 billion from series 6 and 7 commercial papers under its N150 billion programme.
Its series commercial paper with 180-day tenor attracts 24.9889% discount rate, translating to 28.5% implied yield. Series 7 commercial paper with a 270-day tenor attracts a 24.5524% discount rate, translating to a 30% implied yield for investors.
According to investment banking firms, the offer is open to the investing public up until Dec 12, 2024. The refinery is Sub-Saharan Africa’s largest sugar refinery, with a combined installed refining capacity of 1.49 MMT per annum.Currency exchange rates
In the medium term, the company is targeting 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 proceeds from the company’s commercial paper offer is to fund working capital and other funding requirements, investment firms told investors
