Three Nigerian corporates issued commercial papers (CP) in the Nigerian Debt Capital Market (DCM) in July to raise N55 billion as an efficient alternative to their funding and liquidity requirements, according to information gleaned from the FMDQ.
The three companies; Lekki Gardens Estate, Robust International Commodities, and Daraju Industries Limited, issued commercial papers in order to improve their balance sheet and scale up their operations.
Nairametrics tracks major deals consummated in the Nigerian corporate scene with emphasis on companies that have their major operations in the country or with significant interest in Nigeria.
Below is a compilation of deals announced during the month and posted at the FMDQ website.
Lekki Gardens Estate issued N25.00 billion Commercial Paper
FMDQ Exchange through its Board Listings and Markets Committee, during the month approved the registration of the Lekki Gardens Estate Limited N25 billion Commercial Paper (CP) Programme on its platform.
- Speaking on the successful CP Programme registration, the Managing Director/Chief Executive Officer, Lekki Gardens Estate Limited, Mr. Richard Nyong said, “Lekki Gardens is pleased to announce the registration of her N25.00 billion CP programme. As a leading player in the real estate sector, we appreciate how critical sustained access to steady sources of funding is to real estate development.
- The approval of this CP programme by the FMDQ Exchange represents a significant milestone in our near-term growth aspirations and further enhances our capacity to unlock value for all our stakeholders”.
- According to the Executive Director, Business Support & Corporate Services, Lekki Gardens Estate Limited, Ms. Emily Atebe, “Lekki Gardens remains strongly committed to enabling the greatest number of people make the most value of their property and property related investments as we contribute our quota to closing the critical gap in home ownership and development. This issuance is in line with our strategy to diversify our financing options as we continue to deliver on our commitment while efficiently managing our cost of funds”.
Robust International Commodities issued maiden N20.00 billion Commercial Paper
FMDQ Securities Exchange Limited during the period under review admitted the registration of the Robust International Commodities Limited N20.00 billion Commercial Paper (CP) Programme on its platform.
- Robust International Commodities Limited is an entity incorporated under Robust International Group – an organisation that is engaged in the international trading of agricultural commodities such as Cashew nuts, Sesame seeds, Rice, Maize and gum Arabic, amongst others.
- This CP Programme, which is sponsored by Coronation Merchant Bank Limited – a Registration Member (Quotations) of the Exchange, positions the Issuer to raise short-term finance from the Nigerian DCM, through CP issues within its CP Programme limit.
- Speaking on the successful CP Programme registration, the Chairman and Managing Director, Robust International Commodities Limited, Mr. Raaghavan Naarayan, stated “we are delighted with the successful registration of our N20.00 billion Commercial Paper Programme with FMDQ Exchange.
- This milestone affirms our ambition to harness the Nigerian capital market in funding our operations and strategy”.
- Also commenting on the Registration, the Executive Director, Robust International Commodities Limited, Mr. Vishanth Narayan, stated “we remain steadfast in our objective to unlock value for our stakeholders. As a player in procurement, sourcing, distributions, supplying, buying, selling and dealing in various agricultural commodities, access to short term finance is critical to our short-term working capital needs and the Commercial Paper Programme provides the opportunity to actualise our strategic objectives. We expect funds from this Programme to broaden our potential funding sources and create superior value, and we look forward to a warm reception as we engage with capital market investors under this Programme”.
Daraju Industries Limited quote N10.00 billion Commercial Paper
FMDQ Securities Exchange Limited during the period under review registered Daraju Industries Limited N10.00 billion Commercial Paper (CP) Programme on its platform.
- Daraju Industries Limited (Daraju Industries) is a Nigerian registered company with focus on manufacturing and local trading of household items such as fabric care, oral care and body care products, amongst others.
- The registration of the CP Programme, which is sponsored by FBNQuest Merchant Bank Limited, a Registration Member (Quotations) of the Exchange, strategically positions Daraju Industries to raise short-term finance for its working capital needs, from the Nigerian DCM efficiently and at any time deemed suitable, through CP issues, within the approved Programme limit.