This CP issuance is currently open and is set to conclude on Thursday, December 12, 2024. The funds raised will be utilized to meet the short-term working capital and funding needs of Dangote Sugar Refinery Plc.
As a subsidiary of Dangote Industries Limited (DIL), Dangote Sugar Refinery Plc specializes in the refining, distribution, and marketing of granulated sugar to wholesalers and key players in the skincare, food and beverage, and pharmaceutical sectors.
Recognized as the largest sugar refinery in Sub-Saharan Africa, DSR boasts a total installed refining capacity of 1.49 million metric tons per annum. In the medium term, the company aims to produce an additional 1.5 million metric tons of refined sugar from domestically sourced sugarcane, positioning itself to become a prominent global integrated sugar producer through its backward integration strategy.
In January, Dangote Sugar experienced a significant increase in its stock price, rising from an initial value of N57 to a closing price of N67.90, supported by a strong trading volume of 95.1 million shares, marking a positive beginning to the year.
However, this optimism was short-lived as bearish trends emerged in February, causing the stock to retreat to N57.50, with a reduced trading volume of 81 million shares. The stock endured a challenging phase from February to October, as investor sentiment in Nigeria's industrial and consumer goods sectors declined.
Although there was a brief surge in May, with trading volume reaching 35.2 million shares, this recovery was not sustained. By October, the stock had fallen to N30.80. Nevertheless, a ray of hope emerged as the stock ended November on a positive note, indicating a possible recovery from the October lows.
The company's ongoing commercial paper program, part of its N150 billion debt issuance strategy, is anticipated to be vital in stabilizing its operations. By securing essential capital, Dangote Sugar aims to ensure uninterrupted business activities, improve performance, and enhance investor confidence, paving the way for a more favorable market outlook in the future.