The leading sugar milling firms in Nigeria, Dangote Sugar Refinery Plc, is selling commercial paper worth N100 billion to investors.
The company, owned by foremost businessman, Mr Aliko Dangote, is approaching the local debt market for the funds to finance its short-term working capital.
It is offering interested commercial paper buyers the debt instrument in series 10, 11, and 12 at maturities of 90 days, 174 days and 265 days, respectively.
Details of the exercise obtained by Business Post showed that the three-month paper is being offered at a discount rate of 19.97 per cent and an implied yield of 21.00 per cent, the six-month paper goes for a discount rate of 20.73 per cent and an implied yield of 23.00 per cent, and the nine-month paper is being sold at a discount rate of 20.80 per cent and an implief yield of 24.50 per cent.
Subscription for the commercial paper, which is under the company’s N300 billion Commercial Paper Issuance Programme, opened today, Monday, June 23, 2025, and will close of Wednesday, June 25, 2025, with the minimum a subscriber can purchase at N5 million.
Dangote Sugar is a subsidiary of Dangote Industries Limited (DIL) and 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.
It is the largest sugar refining in the Sub-Saharan Africa, with a combined installed refining capacity of 1.49 MMT per annum.
In the medium term, the organisation 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.