Dangote Sugar Refinery Plc has launched its series four and five commercial papers for subscription at a coupon rate of 20.6511% for 181-day bills, resulting in a 23% return on investment placed.
The corporation also has open commercial paper with a tenor of 265 days that yields 21.1669%, or 25%, to market investors. On Thursday, the firm, which is valued at around N486 billion on the Nigerian Exchange, announced plans to raise up to N50 billion with a payback schedule of less than one year.
The earnings from Sub-Saharan Africa’s largest sugar refinery, which has a total installed refining capacity of 1.49 MMT per year, are projected to be used to support working capital and other short-term liquidity 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
