February 23, 2024/Futureview Research

Dangote Sugar Refinery PLC’s (“DSR” or “the Company” or “the Issuer”) has opened its debut Series 1 Commercial Paper offer of up to ₦50 billion under its ₦150bn Commercial Paper Issuance Programme (the “Offer”).

The Offer is NOW OPEN and scheduled to close Tuesday, 27 February 2024.

Dangote Sugar Refinery Plc (DSR) is Sub-Saharan Africa’s largest sugar refinery, 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 Company 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 outgrowers scheme and strategically seeking to expand existing warehouses and fleet of over 800 haulage trucks to cover target markets in Nigeria and West Africa. The Company 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, DSR has reported a solid financial performance with both topline and bottom growth despite challenging macro headwinds. Its strong revenue growth is evidenced by a CAGR of 28.0% between 2018 and 2022 on account of improving operational efficiency, improving customer service delivery, and maintaining the high quality of its products. Additionally, the Company’s growth in profitability is shown in its CAGR of 23.4% and 26.0% in gross profit and operating profit respectively, between 2018 and 2022. As of 9M’23, DSR reported a y-o-y 7.42% growth in revenue.

Please see below indicative terms of the Offer: