Final Call: Dangote Sugar Refinery’s ₦50 Billion Commercial Paper Offer Closes Soon

Introduction
Meristem Capital Limited has issued a reminder regarding Dangote Sugar Refinery PLC’s (DANGSUGAR) Series 6 and 7 Commercial Paper (CP) offer. Part of the company’s ₦150 billion Commercial Paper Issuance Programme, this offering seeks to raise up to ₦50 billion and is scheduled to close on Thursday, 12 December 2024. As Sub-Saharan Africa’s largest sugar refinery, DANGSUGAR’s solid operational foundation and ambitious growth plans make this an attractive investment opportunity.

In addition to the CP offer, DANGSUGAR’s stock performance and financial metrics reflect the company’s position as a key player in Nigeria’s industrial landscape, offering insights into its potential for growth and value creation.

Details of the Commercial Paper Offer

• Issuer: Dangote Sugar Refinery PLC
• Series: 6 and 7 Commercial Paper
• Programme Size: ₦150 billion
• Offer Size: Up to ₦50 billion
• Offer Closing Date: Thursday, 12 December 2024

The CP offer provides a low-risk, short-term investment vehicle with competitive yields, ideal for institutional and retail investors seeking diversification in their portfolios.

About Dangote Sugar Refinery PLC

Dangote Sugar Refinery PLC is a subsidiary of Dangote Industries Limited, specializing in refining, distributing, and marketing granulated sugar. With an installed refining capacity of 1.49 million metric tonnes (MMT) per annum, DANGSUGAR is pivotal in meeting Nigeria’s sugar demand across various industries.

• Key Markets: Food and beverage, pharmaceuticals, and personal care sectors.
• Expansion Plans: Aiming for an additional 1.5MMT of refined sugar through its backward integration project.
• Global Aspirations: DANGSUGAR is on track to becoming a leading global integrated sugar producer.

DANGSUGAR Stock Analysis

Stock Performance

1. Current Price and Market Movement:
   • DANGSUGAR’s stock has demonstrated resilience in 2024, reflecting positive investor sentiment toward the company’s growth strategies.
   • Recent trading activity shows steady price growth, driven by strong earnings and strategic expansions.
2. Year-to-Date Performance:
   • The stock has recorded a +18.7% YTD gain, outperforming many peers in the consumer goods sector.
3. Liquidity and Volatility:
   • Moderate liquidity ensures smooth trading, while low volatility highlights investor confidence in the stock’s stability.

Fundamentals and Financial Metrics

1. Revenue Growth:
   • DANGSUGAR reported a 9.2% year-on-year revenue increase in its latest financials, supported by strong demand in key markets.
2. Profit Margins:
   • Efficient cost management has sustained profit margins despite rising input costs due to inflation and currency volatility.
3. Dividend Policy:
   • DANGSUGAR maintains a history of consistent dividend payouts, reflecting its commitment to shareholder returns.

Why Invest in DANGSUGAR’s Commercial Paper and Stock?

Commercial Paper Advantages

1. Attractive Yield:
   • Competitive rates provide an opportunity for short-term returns.
2. Safety:
   • Backed by Dangote Industries Limited, the CP offers low default risk.
3. Liquidity:
   • Flexible investment tenor suits various investor profiles.

Stock Investment Appeal

1. Market Leadership:
   • DANGSUGAR’s dominant position in the sugar industry ensures steady demand for its products.
2. Growth Potential:
   • The backward integration project enhances long-term revenue prospects and supports Nigeria’s self-sufficiency goals.
3. Sustainability Focus:
   • The company’s commitment to local sourcing and renewable energy projects aligns with global ESG trends, making it an attractive option for socially responsible investors.

Final Reminder and Call to Action

Investors interested in DANGSUGAR’s Series 6 and 7 Commercial Paper offer must act before the closing date of 12 December 2024. This opportunity combines safety, competitive returns, and the backing of one of Africa’s most reputable industrial groups.

For stock market participants, DANGSUGAR’s shares remain a compelling long-term investment, offering a mix of stability, dividend income, and growth potential.

Conclusion

Dangote Sugar Refinery PLC’s ongoing commercial paper offer and strong stock performance highlight the company’s robust financial position and strategic vision. Whether through short-term CP investments or long-term equity holdings, DANGSUGAR offers opportunities for investors to participate in Nigeria’s industrial growth story.

For more information, reach out to Meristem Capital Limited or consult authorized brokers for stock trading.