Dangote Sugar Refinery Plc has effectively raised N42.78 billion by selling commercial paper to asset managers that oversee pensions and non-pension funds in the local debt capital market.
The company announced to the Nigerian Exchange and the investing public in a regulatory filing that it had distributed ₦42.79 billion in Series 4 and 5 Commercial Paper notes to investors. It is anticipated that the money raised will go toward meeting working capital and other financial needs.
The notes were part of the ₦12.93 billion 181-day series 4 and ₦29.86 billion 265-day series 5 notes that were released as part of the sugar refinery company’s ₦150 billion commercial paper issuance program. Information revealed that the series 4 notes had a yield of 23.00% and the series 5 notes had a yield of 25.00%, with participation from several investor groups.
Dangote Sugar said companies that invested in its commercial paper include pension and non-pension asset managers, as well as other institutional and individual investors.
“The successful issuance of the notes is in furtherance of the company’s strategy to diversify its funding sources, with funds raised being deployed to support its short-term working capital and funding requirements,” the sugar refinery said in its notice.
