Dangote Sugar Refinery Plc has opened N50 billion debut series 1 commercial paper offering to investors in the local debt capital market to boost working capital.
According to Futureview Financial Services Limited, the amount offered to investors is part of its ₦150 billion Commercial Paper Issuance Programme. The short-term capital raise is scheduled to close on Tuesday, 27 February 2024.
Dangote Sugar is the largest refinery of its kind in Sub-Saharan Africa, with a combined installed refining capacity of 1.44 million metric tonnes per annum and a market share of about 55% in the retail space.
The issuer is a subsidiary of the Dangote Group and is 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.
DSR is on track to becoming a leading global integrated sugar producer with its backward integration plan – target 0.7MMT refined sugar production, expansion of out-growers scheme and strategic seeking to expand existing warehouses and fleet.
The company has over 800 haulage trucks to cover target markets in Nigeria and West Africa. Currently, it has 47,364 hectares of sugar plantation and aims to produce 1.5 million metric tonnes of refined sugar annually from its sugarcane in the medium term.
Historically, the company has reported a solid financial performance with both top-line and bottom growth despite challenging macro headwinds, Futureview Financial Services Limited said in an update sent to investors.
Its strong revenue growth is evidenced by a 28.0% cumulative average growth rate between 2018 and 2022 on account of improving operational efficiency, improving customer service delivery, and maintaining the high quality of its products.