Dangote Sugar Refinery Plc (DSR) is currently in the market seeking N50 billion from series 6 and 7 Commercial Paper issuance under its N150 billion Commercial Paper issuance programme. The net proceeds from this issuance will be used to support Dangote Sugar Refinery Plc’s short-term financing requirements and general corporate purposes. The CP issuance is still open and is scheduled to close on Thursday, December 12, 2024.
Previously, Dangote Sugar Refinery successfully issued N42.79 billion Series 4 and 5 Commercial Paper notes. The Series 4 notes priced at a 23 percent yield, while the Series 5 notes priced at a 25 percent yield. The company established a N150 billion commercial paper issuance programme on February 6, 2024, to issue commercial paper notes denominated in Nigerian Naira.
The lead arrangers of the N150 billion CP programme are Stanbic IBTC Capital, Absa, and Greenwich Merchant Bank. The Notes issued under the commercial paper issuance programme are in dematerialized form. Dangote Sugar Refinery is a leading player in the Nigerian sugar industry with a market share of about 55 percent.
The company has a dedicated jetty at Apapa ports for efficient receipt of raw sugar imported from Brazil. Dangote Sugar Refinery is working on enhancing its existing refinery operations in Numan, Adamawa State, and developing its greenfield sites at the Nasarawa Sugar Company Project. The ongoing upgrading of Dangote Sugar refinery in Numan, Adamawa State is expected to generate 32 megawatts of electricity.
In terms of financials, Dangote Sugar Refinery Plc reported revenue growth in 2023, but also reported losses due to exchange rate fluctuations. Agusto & Co assigned a rating of “A+” to Dangote Sugar Refinery and highlighted some concerns about the company’s profitability in 2024. Additionally, DataPro assigned the company a long-term rating of “A+” and a short-term rating of “A1”.
Dangote Sugar Refinery was established in 1999 and listed on the Nigerian Stock Exchange in 2007. The company is involved in refining raw sugar and distributing it to consumers and industrial customers in Nigeria. Dangote Sugar Refinery currently has four subsidiaries.
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