Dangote Sugar Refinery Raises N42.79bn Through Commercial Paper Issuance
Written by Jerry Alomatu on June 17, 2024
Dangote Sugar Refinery PLC has announced the successful issuance of Series 4 and 5 Commercial Paper notes, raising N42.79 billion. This issuance is part of its N150 billion Commercial Paper Issuance Programme, as disclosed in a release filed with the Nigerian Exchange Limited by the Company Secretary, Temitope Hassan.
The issuance consists of N12.93 billion in 181-day Series 4 notes and N29.86 billion in 265-day Series 5 notes, which garnered significant interest from various investors, including pension and non-pension asset managers, as well as other institutional and individual investors. The Series 4 notes were priced at a 23.00 percent yield, while the Series 5 notes were priced at a 25.00 percent yield.
“This successful issuance of N42.79 billion in Series 4 and 5 Commercial Paper notes underscores the confidence investors have in Dangote Sugar’s business model and growth prospects,” Hassan stated. He highlighted that the robust investor participation is a testament to the company’s strong market position.
Hassan explained that the proceeds from the commercial paper notes will be used to support the company’s short-term working capital and funding requirements. This strategic move is aimed at diversifying Dangote Sugar Refinery’s funding sources to enhance its financial flexibility and operational efficiency.
The issuance reflects Dangote Sugar Refinery’s commitment to maintaining a strong financial position and supporting its operational and growth initiatives. The company continues to expand its investment projects, including backward integration projects and merging with other Dangote entities, to strengthen its market presence and operational capabilities.
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Author: Jerry Alomatu
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