Dangote Sugar Opens N100 Billion Commercial Paper at 20.80% Discount Rate

Dangote Sugar Refinery Plc has opened a N100 billion commercial paper issuance to bolster its working capital. This move, part of a broader N300 billion programme, offers investors attractive discount rates, with the 265-day tenor leading at 20.80%.

The offer, which opened on June 23, 2025, targets institutional and retail investors seeking high-yield opportunities. It is set to close on June 25, 2025, providing a narrow window for participation in this lucrative debt instrument.

Competitive Yields Across Tenors

The 90-day commercial paper carries a 19.97% discount rate, translating to an implied yield of 21%. This short-term option appeals to investors prioritizing liquidity and quick returns.

For those eyeing medium-term investments, the 174-day paper offers a 20.73% discount rate with a 23% implied yield. The 265-day tenor, with its 20.80% discount, balances duration and return, making it a standout choice.

Driving Sub-Saharan Africa’s Sugar Industry

Dangote Sugar, a subsidiary of Dangote Industries Limited, dominates as sub-Saharan Africa’s largest sugar refinery. Its 1.49 million metric tonnes (MMT) annual refining capacity supports key sectors like food, beverage, and pharmaceuticals.

The company distributes granulated sugar to wholesalers and industry giants in skincare and beyond. Its robust market position underscores the reliability of its financial instruments, including this commercial paper.