Dangote Sugar Refinery has unveiled its Series 6 and 7 commercial paper offerings, seeking to raise up to N50 billion from the debt market.
This follows the company’s successful issuance of its Series 4 and 5 commercial papers in mid-June, which collectively raised N42.79 billion at competitive rates of 23% and 25%, reflecting strong investor confidence.
Series 4, with a tenure of 181 days, raised N12.93 billion, while Series 5, with a longer tenure of 265 days, raised a larger sum of N29.86 billion.
Building on this momentum, Dangote Sugar has now returned to the market as part of its N150 billion debt issuance program, aimed at bolstering its working capital.
Announced in December 2024, the Series 6 and 7 papers highlight the company’s ongoing commitment to leveraging Nigeria’s capital markets for strategic financing.
According to reports, the subscription window for Dangote Sugar’s Series 6 and 7 commercial papers closes on December 12, 2024, offering investors a chance to support its expansion goals.
The series 6 and 7 commercial papers form part of Dangote Sugar’s N150 billion debt program.
In mid-June 2024, Dangote Sugar Refinery successfully issued its Series 4 and 5 commercial papers, raising a total of N42.79 billion.
Building on this, the company issued Series 2 notes, raising N6.15 billion with a 184-day maturity at a 19.84% discount rate. Series 3 marked a significant increase, generating N53.47 billion through 254-day notes at a 21.30% discount rate.
With Series 1 to 5, Dangote Sugar has successfully raised a cumulative N141.8 billion, underscoring its ability to tap into Nigeria’s debt markets to fuel its growth and operational needs.
In January, Dangote Sugar’s stock surged from an opening price of N57 to close at N67.90, driven by a robust trading volume of 95.1 million shares—a promising start to the year.
The company’s ongoing commercial paper program, part of its N150 billion debt issuance initiative, is expected to play a crucial role in stabilizing operations.
By raising much-needed capital, Dangote Sugar aims to maintain smooth business activities, enhance performance, and bolster investor confidence, setting the stage for improved market sentiment moving forward.