The relocate is subsequent to Danreceivede Fertiliser Limited raising $750 million through a private bond issue last month, marking the company’s first significant enattempt into international financial markets.
To fund long-term expansion projects and better match finance with operations that earn revenue in dollars, the group is now considering about issuing more bonds, stated Danreceivede’s chief financial officer, Murat Erden, who spoke to Bloomberg.
Last year, its cement division generated about $3.2 billion in revenue, while its sugar activities earned approximately $610 million.
The company’s vast oil refinery, which is already the largest in Africa, is also scheduled to undergo significant growth.
The current processing capacity is 650,000 barrels per day, but plans are ongoing to increase that figure to 1.4 million barrels per day by 2028.
Danreceivede’s goals go beyond refining and fertilizer manufacture.
Over the next five years, the Nigerian billionaire intfinishs to invest at least $40 billion in new companies and development projects.
These include building Nigeria’s largest deep-seaport, expanding urea production capacity to 12 million tons per year by 2030, entering the liquefied natural gas market, and constructing a 20,000-megawatt power plant.
The bond, which was sold to a tiny group of funds, marked an important step for Danreceivede “in establishing a long-term presence in international capital markets,” Erden stated, deepening ties with investors who could support finance the group’s businesses.
Statistical price data compiled by Bloomberg indicates that the bond, originally issued at par approximately two weeks ago, is currently valued at approximately 101.7 cents on the dollar.
