* Investors subscribe N220bn as cocoa dealer strengthens procurement and processing growth plans
Sunbeth Global Concept Limited has secured subscriptions exceeding N220 billion for its N150 billion industrial paper supply, surpassing its goal by greater than N70 billion and recording an oversubscription of over 46.7 per cent.
The sturdy investor response underscores confidence within the firm’s enterprise technique and development prospects because it expands its cocoa sourcing, buying and selling and processing operations.
Sunbeth mentioned proceeds from the issuance could be used to help cocoa procurement for the brand new season, in addition to meet its buying and selling and dealing capital necessities.
The profitable supply comes amid the corporate’s efforts to strengthen its place within the cocoa worth chain by way of an expanded sourcing community, elevated buying and selling capability and investments in native processing.
A key part of the technique is a deliberate cocoa processing plant in Nigeria with a capability of 70,000 metric tonnes. The facility is predicted to help the corporate’s ambition to deepen native worth addition and provide cocoa merchandise to clients in home, regional and worldwide markets.
Commenting on the end result of the issuance, Sunbeth’s Chief Financial Officer, Adeyemi Aduwo, mentioned the extent of subscriptions mirrored traders’ confidence within the firm and its development technique.
“The strong response reflects investors’ confidence in Sunbeth and our growth strategy. We thank our investors and transaction partners for their support. This funding strengthens our cocoa procurement capacity as we continue building an integrated business spanning sourcing, trading and processing,” Aduwo mentioned.
The industrial paper proceeds are anticipated to offer extra funding flexibility for seasonal cocoa purchases, a crucial requirement within the firm’s buying and selling operations, whereas supporting its broader growth targets.
Sunbeth additionally acknowledged the contributions of Chapel Hill Denham, the lead arranger, alongside the collaborating sellers, advisers {and professional} companions concerned within the transaction.
The companions 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 authorized counsel to the transaction.
The profitable issuance gives Sunbeth with extra sources to strengthen its procurement capability at the beginning of the brand new cocoa season whereas advancing its plans to construct a extra built-in enterprise.
The firm mentioned it remained centered on increasing its international buyer base, strengthening its sourcing community and growing its processing capability, supported by disciplined monetary administration.
With the deliberate processing funding complementing its present sourcing and buying and selling actions, Sunbeth is positioning itself to seize larger worth from Nigeria’s cocoa sector and take part extra actively in regional and worldwide cocoa markets.
