Dangote Sugar Plc has announced that its proposed N106 billion investment directed towards enhancing local sugar production would be partly sourced from the capital market, the fund, he said would be invested by the company in the next three years.
Engr, Abdulahi Sule, Acting managing Director, Dangote sugar Plc revealed this on Tuesday in Lagos, during the facts behind the figures presentation of the company at the Nigerian Stock Exchange (NSE), Customs street Lagos.
He said that though the board will eventually decide on the vehicle to raise the fund, but explained further that 20 per cent of the funds would be generated from equity.
Sule explained that the company in keeping with its tradition of dividend payment, could not have denied shareholders dividend of N0.60 per share this year, even as the company put finishing touches on fund raising documents for the company’s expansion project.
He said that Dangote sugar is a zero debt company with strong sustainability initiatives that takes care of the indigent sugarcane growers.
He said that the company is continually involved in community engagement with local communities where the company has farms.
We have robust out growers’ scheme, which also creates massive employment opportunities, in addition to creating large revenue base, as ethanol and animal feed production will be enhanced”
The company’s acting managing director, said that Dangote sugar’s out growers scheme is woven around the company’s sustainability initiative, as it provides the local farmers large expanse of land to farm,
“We provide irrigation, water, fertilizer, seedlings among other necessities they may need, and with a guaranty to buy all their produce.
“We are giving 30,000 hectares of land to the out growers, we are seedlings, fertilizer, irrigation and other things and at the end of the day, we buy all that they produce”
He said that the company’s new expansion project is 108,000 hectare plantation scattered across Adamawa, Taraba and Nasarawa, and expected to generate 1,080,000 metric tons of sugar, adding that Savana sugar, acquired by Dangote sugar early in its operations, is the sole producer of sugar in Nigeria.
Assuring of the company’s commitment to continually reward shareholders, he assured that as revenue grew by 88 percent in Q1 2017, Dangote sugar will continually grow earnings and reward investors bountifully.