Sunbeth Global Concept Limited, a prominent cocoa trader in Nigeria, has successfully secured subscriptions exceeding N220 billion for its N150 billion commercial paper offer. This significant oversubscription, which surpasses the target by over N70 billion, reflects a strong investor response of 46.7%. The company attributes this confidence to its robust business strategy and promising growth prospects, particularly as it expands its cocoa sourcing, trading, and processing operations.
The cocoa trading company plans to utilize the proceeds from this issuance to support cocoa procurement for the upcoming season and meet its trading and working capital requirements. This strategic move is part of Sunbeth’s broader efforts to strengthen its position in the cocoa value chain. The company aims to achieve this through an expanded sourcing network, increased trading capacity, and investments in local processing facilities.
A key component of Sunbeth’s strategy is the planned establishment of a cocoa processing plant in Nigeria, with a capacity of 70,000 metric tonnes. This facility is expected to play a crucial role in supporting the company’s ambition to enhance local value addition and supply cocoa products to customers in domestic, regional, and international markets. By deepening local value addition, Sunbeth aims to capture greater value from Nigeria’s cocoa sector.
Commenting on the outcome of the issuance, Sunbeth’s Chief Financial Officer, Adeyemi Aduwo, expressed satisfaction with the level of subscriptions, which he said reflected investors’ confidence in the company and its growth strategy. Aduwo thanked the investors and transaction partners for their support, emphasizing that this funding will strengthen the company’s cocoa procurement capacity as it continues to build an integrated business spanning sourcing, trading, and processing.
The commercial paper proceeds are expected to provide Sunbeth with additional funding flexibility for seasonal cocoa purchases, a critical requirement in the company’s trading operations. This funding will also support its broader expansion objectives, including the development of its processing capacity. By securing this funding, Sunbeth is well-positioned to navigate the seasonal cocoa purchases efficiently.
Sunbeth acknowledged the contributions of various partners involved in the transaction, including Chapel Hill Denham, the lead arranger, alongside participating dealers, advisers, and professional partners. These partners included AVA Capital Plc, Cordros Advisory Services Limited, Coronation Merchant Bank Limited, FSL Advisory Limited, Meristem Capital Limited, Norrenberger Advisory Partners Limited, PAC Capital Limited, Rand Merchant Bank, CFG Manyard, Absa Nigeria, Zedcrest, and KPMG. The New Practice served as legal counsel to the transaction.
With the successful issuance of the commercial paper, Sunbeth remains focused on expanding its global customer base, strengthening its sourcing network, and developing its processing capacity, supported by disciplined financial management. The company is positioning itself to participate more actively in regional and international cocoa markets, leveraging its planned processing investment to complement its existing sourcing and trading activities.
Key points
- Sunbeth Global Concept Limited's commercial paper offer was oversubscribed by 46.7%.
- The company plans to use the funds to support cocoa procurement and expand its processing capacity.
- Sunbeth is building a cocoa processing plant in Nigeria with a capacity of 70,000 metric tonnes.
