Nigerian companies raised N249 billion in 6 months.

By Carol Yusufu Wakili

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Posted: July 9, 2022 at 4:01 PM, Updated: July 9, 2022 at 4:01 PM

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Nine Nigerian commercial papers companies issued N248.880 billion in commercial papers to enhance their balance sheets and expand during the half-year ending June 30, 2022.

Nairametrics examines big corporate deals in Nigeria, focusing on corporations with major activities or interests in Nigeria.

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Here are half-year deals. The information came from news reports and press releases.

MTN Nigeria issues commercial papers worth N127 billion.

MTN Nigeria Communications Plc issued N127 billion in Series 1 & 2 Commercial Paper (CP) under its N150 billion scheme.

The offering included a 184-day series at 7.50% yield and a 254-day Series 2 at 8.50% yield.

The telecommunications giant said the issuance was part of its goal to diversify financing options. The funds will be used for working capital and other corporate purposes.

MTN Nigeria Communication CEO Karl Toriola said the N127 billion Commercial Papers issue would be Nigeria’s largest.

“The success of our Commercial Papers issue is a clear demonstration of the strength and acceptance of the MTN brand,” he said. “I and the trust placed by the investor community in MTN Nigeria’s company’s leadership, strong financial performance and corporate strategy.” MTN Nigeria completed the N127 billion Commercial papers to improve customer service and high-quality bouquet offerings, including a 5G spectrum awaiting regulatory approval.

These Commercial papers help us to fund our product deployment and distribution network efficiently.

Lekki Gardens Estate issued N25bn Commercial Papers.

Lekki Gardens Estates’ N25 billion in the commercial paper was authorized by FMDQ Security Exchange Limited.

Dr Richard Nyong, CEO of Lekki Gardens Estates Limited, praised the approval of FMDQ Exchange’s commercial paper issuance program as a huge step for the company, adding it will help broaden its market offering to clients and unleash value for all stakeholders.

This type of funding will help us assist our customers with pseudo-mortgage support. And it helps our business to strengthen the delivery system that we already have in place. “That is the key thing we are trying to do—making our business stronger, more solid, and strategic in its ability to deliver to our esteemed customers,” he said.

NOVA Merchant Bank issued N20 billion in commercial paper.

NOVA Merchant Bank issued N20 billion in Series 1 & 2 Commercial Paper during the review period.

The bank will use the commercial paper proceeds for short-term operating capital and general company purposes.

The offer launched on the FMDQ platform on February 8, 2022, with Series 1 lasting 182 days and Series 2 270.

Mr Nath Ude, the Managing Director/CEO of NOVA Merchant Bank, said, “The successful listing of our N50billion CP Programme on the FMDQ platform further demonstrates NOVA Merchant Bank’s confidence in the Nigerian debt capital market and positions the bank to broaden potential funding sources and create superior value in the financial market it serves.” We want to change the African financial services scene with new ideas.

UAC issues Commercial Paper worth N18.7 billion.

UAC of Nigeria Plc issued N18.7 billion in Series 1 and 2 Commercial Paper during the reporting period.

The Commercial papers Issue included two tenors: a 90-day Series 1 issuance priced at 8% yield and a 181-day Series 2 issuance priced at 8.25% yield.

The Commercial paper’s issue was 3.8x subscribed and was part of UAC’s intra-group treasury arrangement to fulfil short-term working cash needs.

UAC’s group finance director, Funke Ijaiya-Oladipo, stated, “We’re thrilled to have issued our first CP in the Nigerian debt market.” This demonstrates our company’s strength, the sustainability of our brands, and investor confidence.

It is without a doubt that the success of this issuance provides an avenue to optimize our funding costs while continuing to drive our strategic initiatives as an organization. He stated that we are pleased by the success of the CP Issuance and are grateful to all parties involved in the transaction.

FBNQuest Merchant Bank issued an N15bn Commercial Papers.

FBN Holdings Plc’s FBNQuest Merchant Bank Limited issued N15 billion in commercial paper.

The six-month paper has an estimated yield of 8.25% and a discount rate of 7.9275%, while the nine-month paper has an implied yield of 9.0000%.

The bank said the commercial paper will help the organization achieve its short-term liquidity needs and give them access to cheaper finance.

RMB Nigeria released N15 billion in Commercial Papers.

RMB Nigeria sold N15 billion in commercial paper.

The exercise began on Friday, April 1, 2022, and ended on Wednesday, April 6, 2022. The paper was provided in two tenors: 182 days and 270 days.

The N80 billion commercial paper sale is being sold in series 1 and 2.

The 182-day maturity has a discount rate of 7.4617% and an indicated yield of 7.7500%, while the 270-day tenor has a discount rate of 7.9972% and an implied yield of 8.5000%.

According to the bank, the issuance was for short-term operating capital and other company reasons.

RMB Nigeria has been authorized by the CBN to conduct merchant banking, financial advisory, corporate banking, and trading.

The lender is a subsidiary of Johannesburg-and Namibian-listed FirstRand Group.

Veritasi Homes has an N10 billion Commercial Papers listing.

Veritasi Homes and Properties signed an N10 billion commercial paper (CP) program approved by the FMDQ Securities Exchange Board Listings and Markets Committee.

The CP Programme allows the company to raise debt financing for up to 270 days when it’s convenient.

Adetola Nola, founder and CEO of Veritasi Homes and Properties Limited, said signing the commercial paper program was a major accomplishment.

“We are glad that the money from the CP will be used to construct exceptional real estate developments,” he said.

Series 8 Commercial Paper was issued by United Capital Plc.

United Capital Plc issued N12.48 billion of Series 8 Commercial Paper (CP) on its platform during the period.

According to the company, the proceeds from the quote of this CP, co-sponsored by FSDH Capital Limited, UCML Capital PLC, and NOVA Merchant Bank Limited—all Registration Members (Quotations) of FMDQ Exchange—would be used to support short-term working capital requirements.

Neveah issued N5.7 billion in commercial paper.

Neveah Limited’s N5.7 billion Series 3 and Series 4 commercial papers Issuance were quoted on the FMDQ Exchange.

According to a business statement, both Series 3 and 4 CP issuance were warmly accepted by asset managers and HNWIs (HNIs).

The issuing of these series aligns with the company’s strategic goal to become a major dealer and exporter of world-class Argo-commodities and minerals while maintaining a transparent business strategy.

Data-Pro Grades gave the company A1 (short-term) and BBB (long-term) ratings with a favourable outlook, and United Capital Plc provided strategic counsel.

According to CEO Ibidapo Lawal, “t” the commercial paper issuance will further place the company in a strategic position to meet its contractual obligations with off-takers.

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