Sunbeth Global launches N100 billion Commercial Paper issuance

Sunbeth Global Concepts Limited has announced a N100 billion Commercial Paper issuance under its N200 billion Commercial Paper Programme.

This issuance marks a continuation of the company’s strategic use of the Nigerian short-term debt market, as it seeks to raise funds to support working capital and other funding requirements.

The offer opened on Friday, February 27, 2026, and is scheduled to close on Thursday, March 5, 2026.

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**What the offer circular is saying **

• Tenor: 180 days for Series 1, 270 days for Series 2, and 364 days for Series 3
• Discount Rate: 19.0293% (Series 1), 19.2895% (Series 2), 19.0383% (Series 3)
• Implied Yield: 21.0000% (Series 1), 22.5000% (Series 2), 23.5000% (Series 3
• Settlement Date: Friday, March 6, 2026
• Issue Rating (Short-Term): A2 (DataPro) / A2 (GCR)
• Issue Rating (Long-Term): A (DataPro) / BBB+ (GCR)
• Minimum Subscription: NGN5,000,000 (5,000 units at NGN1,000/unit), with multiples of NGN1,000 thereafter
• Taxation: Applicable taxes shall apply except otherwise exempt
• Listing: FMDQ and/or NGX

**The Company behind the offer **

Sunbeth Global Concepts Limited is a Nigerian-based company in the agri-commodities industry, focusing primarily on the sourcing, processing, and export of raw cocoa beans and cashew nuts.

Established in 2017, the company now exports over 200,000 metric tonnes of cocoa beans and 60,000 metric tonnes of cashew to international markets annually.

The company operates across Nigeria and has a wide-reaching distribution network, collaborating with over 250 local buying agents and regional merchants, ensuring a steady supply of quality products to meet global demand.

**What you need to know **

The commercial paper offers implied annual yields ranging from 21.00% to 23.50%, depending on the tenor of the series.

These yields represent a competitive risk premium compared to short-term government securities, providing attractive returns for investors looking for high-yield opportunities.

• Series 1 (180 days) offers a yield of 21.00%
• Series 2 (270 days) offers a yield of 22.50%
• Series 3 (364 days) offers a yield of 23.50%

These rates are notably higher than those available on similar short-term instruments in the market, making them appealing to yield-seeking investors.

**Investment case **

Sunbeth’s commercial paper issuance could present an investment case, provided it is backed by its repayment track record and financial performance.

From a financial perspective, Sunbeth’s strong revenue and profit growth, coupled with a healthy interest coverage ratio, support the commercial paper issuance.

As of the 9-month 2025 report, the company’s operating profit can cover 2.3 times its interest expenses, despite a rise in finance costs.

However, it’s worth noting that interest coverage declined, from 3.20x in 2023 to 2.76x in 2024, driven by N38 billion in interest expenses (excluding a total finance cost of N59 billion). While this decline reflects the pressure of rising financing costs, it remains within an acceptable range.

That said, the revenue growth observed in the first nine months of 2025, if sustained, is likely to improve the bottom line, enabling the company to absorb the continued rise in debt.

• The nine-month 2025 revenue of N540 billion is already 6% higher than the full-year revenue for 2024.

A deeper look into the company’s financial health confirms that, even with rising debt, Sunbeth’s leverage ratios (including debt to assets, debt to equity, and equity multiple) remain strong.

The company’s asset base has grown, and its debt levels relative to assets suggest that it is financially resilient and can take on additional debt reasonably.

The company’s asset base has grown, and its debt relative to assets suggests that it is financially resilient and in a good position to manage additional leverage.

The company appears financially capable of meeting its short-term debt obligations, making the CP a viable investment for those seeking high-yield opportunities.

**Investor takeaways **

Sunbeth’s commercial paper offers attractive yields, backed by strong revenue growth, healthy cash flow, an investment-grade rating, and a growth outlook.

However, investors should consider the company’s rising debt profile, interest expenses, and the declining interest coverage ratio, which could present risks if market conditions shift.

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