Sunbeth’s N150bn Commercial Paper Offer Oversubscribed by 46.7%

* Investors subscribe N220bn as cocoa trader strengthens procurement and processing expansion plans

Sunbeth Global Concept Limited has secured subscriptions exceeding N220 billion for its N150 billion commercial paper offer, surpassing its target by more than N70 billion and recording an oversubscription of over 46.7 per cent.

The strong investor response underscores confidence in the company’s business strategy and growth prospects as it expands its cocoa sourcing, trading and processing operations.

Sunbeth said proceeds from the issuance would be used to support cocoa procurement for the new season, as well as meet its trading and working capital requirements.

The successful offer comes amid the company’s efforts to strengthen its position in the cocoa value chain through an expanded sourcing network, increased trading capacity and investments in local processing.

A key component of the strategy is a planned cocoa processing plant in Nigeria with a capacity of 70,000 metric tonnes. The facility is expected to support the company’s ambition to deepen local value addition and supply cocoa products to customers in domestic, regional and international markets.

Commenting on the outcome of the issuance, Sunbeth’s Chief Financial Officer, Adeyemi Aduwo, said the level of subscriptions reflected investors’ confidence in the company and its growth strategy.

“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 said.

The commercial paper proceeds are expected to provide additional funding flexibility for seasonal cocoa purchases, a critical requirement in the company’s trading operations, while supporting its broader expansion objectives.

Sunbeth also acknowledged the contributions of Chapel Hill Denham, the lead arranger, alongside the participating dealers, advisers and professional partners involved in the transaction.

The 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.

The successful issuance provides Sunbeth with additional resources to strengthen its procurement capacity at the start of the new cocoa season while advancing its plans to build a more integrated business.

The company said it remained focused on expanding its global customer base, strengthening its sourcing network and developing its processing capacity, supported by disciplined financial management.

With the planned processing investment complementing its existing sourcing and trading activities, Sunbeth is positioning itself to capture greater value from Nigeria’s cocoa sector and participate more actively in regional and international cocoa markets.