The Dangote Sugar Refinery has said that it has raised N42.79 billion by issuing Series 4 and 5 Commercial Paper notes.
The most recent commercial notes were issued as part of the N150 billion Commercial Paper Issuance Programme, according to a statement signed by Temitope Hassan, the Company Secretary, and filed with the Nigerian Exchange Limited.
“Dangote Sugar Refinery PLC hereby notifies the Nigerian Exchange and the investing public of its successful issuance of N42.79bn Series 4 and 5 Commercial Paper notes (the “Notes”)” he said.
According to Hassan, there was a lot of interest from institutional and individual investors as well as pension and non-pension asset managers in the N12.93bn 181-day Series 4 and N29.86bn 265-day Series 5 notes that were issued.
He went on to say that the Series 5 notes had a pricing of 25.00 percent yield, whereas the Series 4 notes had a pricing of 23.00 percent.
“The notes, which were issued under the company’s N150bn Commercial Paper Issuance Programme, comprised N12.93bn 181-day Series 4 and N29.86bn 265-day Series 5 notes.
“The Series 4 notes are priced at a 23.00 per cent yield, while the Series 5 notes are priced at a 25.00 per cent yield, with participation from several investor groups, including pension and non-pension asset managers, as well as other institutional and individual investors,” he elucidated.
The successful offering, he continued, was a calculated attempt to diversify its funding sources.
He insisted that the company’s short-term working capital and funding needs would be met with the money acquired through the sale of commercial paper notes.
He thanked the investors for their active engagement, pointing out that it demonstrated their faith in the company’s growth potential and business plan.
“The successful issuance of the notes is in furtherance of the company’s strategy to diversify its funding sources, with the funds raised being deployed to support its short-term working capital and funding requirements,” he stated.
