NIGERIA – Dangote Sugar Refinery Plc, Nigeria’s largest sugar producer, has successfully registered its N200 billion (US$128.58M) multi-instrument issuance programme with the Securities and Exchange Commission (SEC).
This move was disclosed in a statement filed with the Nigeria Exchange Limited, signed by Company Secretary Temitope Hassan.
Hassan emphasized that the initiative aligns with Dangote Sugar’s commitment to diversifying its funding sources to support its corporate objectives and strategic growth plans.
“The registration of the Multi-Instrument Issuance Programme represents a significant step for DSR and reinforces the company’s commitment to diversifying its funding sources in alignment with its corporate objectives,” the company stated.
Future issuances under this program will depend on prevailing market conditions and will require relevant regulatory approvals.
This follows the recent issuance of Series 4 and 5 Commercial Paper (CP) notes, through which Dangote Sugar raised N42.79 billion (US$27.51M) under its N150 billion (US$96.43M) Commercial Paper Issuance Programme. The CP notes attracted strong interest from pension and non-pension asset managers, as well as other institutional and individual investors.
In 2023, Dangote Sugar reported its first annual loss in over a decade, with an after-tax loss of US$47.7 million, starkly contrasting the US$34.28 million profit reported the previous year.
The company cited difficulties in sourcing foreign currencies as a major challenge, leading to a substantial rise in financing costs, which soared to over US$132.8 million from less than $6.6 million a year earlier.
The company also faced significant increases in selling costs, administrative expenses, and taxes, culminating in an overall expense bill exceeding US$399 million.
Despite these challenges, Dangote Sugar remains committed to its growth and development plans. The company is actively working on refining operations in Numan, Adamawa State, and developing greenfield sites, aligning with the National Sugar Master Plan’s objective of achieving self-sufficiency in sugar production.
The ongoing refinery upgrade in Numan is expected to generate 32 megawatts of electricity, showcasing Dangote Sugar’s commitment to innovation and diversification. This project aims to produce ethanol and animal feed from by-products like molasses and bagasse.
Liked this article? Subscribe to Food Business Africa News, our regular email newsletters with the latest news insights from Africa and the World’s food and agro industry. HERE
